Icelandic PM acknowledges public's low confidence in economic management

A recent poll reveals widespread public dissatisfaction with the Icelandic government's economic policies, with a stark majority expressing low confidence in its ability to lower interest rates and curb inflation.

“

We take this to heart, of course.

According to a Gallup poll for Viðskiptablaðið, seven out of ten respondents believe the government is performing poorly on interest rates, and 69% feel the same about inflation control. When considering only those with a clear stance, these figures rise to 87% and 85% respectively, with only 13% and 15% giving the government a positive rating.

Prime Minister Kristrún Frostadóttir acknowledged the poll's findings, stating, "We take this to heart, of course." She noted that Iceland has faced economic challenges for years, with high interest rates and persistent inflation during the previous term. Frostadóttir added that while the current government started well, it has faced "external shocks," such as rising oil prices, which have impacted inflation.

“

We started off well but received external blows. We are working through it and hope these bad shocks will stop hitting us.

Looking ahead, Frostadóttir emphasized the need to manage fiscal policy carefully to avoid further inflation. "We will also need to consider fiscal policy and be even more careful than before that we do not cause inflation. That requires difficult decisions, but we are confident in our ability to do so," she said. The government hopes these external pressures will subside.

“

We will also need to consider fiscal policy and be even more careful than before that we do not cause inflation. That requires difficult decisions, but we are confident in our ability to do so.