Don't miss

Replay


LATEST SHOWS

ENCORE!

Omar El Akkad's 'American War': A tale of US dystopia

Read more

FOCUS

Iraq: The long road to rebuilding Mosul

Read more

BUSINESS DAILY

Exxon sues US over $2m fine for violating Russia sanctions

Read more

IN THE PAPERS

'Too sexy for Malaysia': Hit single 'Despacito' stirs controversy

Read more

IN THE PAPERS

Is this the end of Emmanuel Macron's honeymoon period?

Read more

MEDIAWATCH

Macron's air force uniform draws Tom Cruise comparisons

Read more

THE DEBATE

Polish democracy under threat? EU warns Warsaw over judicial independence

Read more

PEOPLE & PROFIT

Game of Thrones and TV's golden age

Read more

ENCORE!

The best of the summer's exhibitions in Paris

Read more

Business

2009 sees 6.5% decline in GDP on plunging domestic expenditure

Text by News Wires

Latest update : 2010-03-05

Iceland gross domestic product (GDP) fell back by 6.5% in real terms in 2009, a record according to Statistics Iceland. The sharp decline in GDP last year was largely due to a 20.1-percent plunge in domestic expenditure

AFP - The crisis-stricken Icelandic economy shrank by a record 6.5 percent in 2009, having grown by 1.0 percent in 2008 and 6.0 percent in 2007, official data showed on Friday.

"The present figures show that gross domestic product (GDP) decreased by 6.5 percent in real terms, a record in the Icelandic national accounts," Statistics Iceland said in a statement citing provisional figures.

The sharp decline in GDP last year was largely due to a 20.1-percent plunge in domestic expenditure, with household consumption dropping 14.6 percent and government consumption dwindling three percent, as Iceland's fixed capital formation dropped 49.9 percent, the national statistics agency said.

On the up side, exports had grown 6.2 percent as imports fell 24 percent.

"This resulted in a considerable improvement in the balance of goods and services, from a deficit of 42 billion kronur (241 million euros, 328 million dollars) in 2008 to a surplus of 120 billion kronur in 2009," it said.

Iceland's once-booming financial sector ground to a halt in October 2008 when the country's major banks collapsed after borrowing beyond their means to fund ambitious investments abroad -- their liabilities were once worth 11 times Iceland's total GDP.

Date created : 2010-03-05

  • ICELAND

    Referendum due after president rejects ‘Icesave’ repayments

    Read more

  • ICELAND

    Dutch govt slams Iceland president’s inaction on Icesave

    Read more

COMMENT(S)