Sentiment in the Icelandic economy has taken a marked turn for the worse, according to the results of a regular survey conducted by Gallup for the Central Bank of Iceland and the Confederation of Icelandic Enterprise (SA). More than half — 54% of respondents — say economic conditions are poor.
The economic sentiment index has now fallen to 21, a level not seen since the pandemic, when it dropped as low as 2.
It is interesting to compare current responses with the expectations respondents expressed six months ago. Those comparisons show that confidence has deteriorated very quickly — and the recent interest rate cut appears to have made no noticeable difference.
Jón Ólafur Halldórsson, chairman of SA, says the results reflect uncertainty and worsening conditions, but also a glimmer of hope.
“However, one can discern that companies believe we may be approaching the bottom. And from there, there is only one direction — and that is up.”
Source: Mbl.is
