According to VAT-reports turnover has increased in most economic activities from last year, i.e. from July-August 2021 to July-August 2022. However, in some economic activities the increase in turnover was not on par with the inflation as the consumer price index rose by 10% in this period.
Many service activities, e.g. the tourism industry, are recovering after the Covid-19 pandemic and their turnover in 2022 is considerably higher than in 2021. Activities in production and trade were less affected by the pandemic.
Turnover increased by 84% in the wholesale of fuel. According to external trade reports, the volume of fuel imported in July-August 2022 was similar to the volume imported in July-August 2021 but the unit price has increased. Along the same lines, the 46% increase in the manufacture of basic metals can be explained by increases in price since the quantity of exports was on par while the unit price increased.
The 34% rise in the turnover of construction can be at least partially explained by more production as the number of persons receiving wages in this economic activity increased by 10% from July-August 2021 to the same period in 2022.
The tourism industry
The tourism industry was greatly affected by the Covid-19 pandemic, but seams to be recovering. According to VAT-reports, the turnover in tourism was 195.6 billion ISK in July-August 2022 which is the highest turnover ever. The turnover was 14% higher in July-August 2022 than in the same months 2018, before the pandemic, but it should be borne in mind that this increase is not on par with the inflation as the consumer price index rose by 22% in this period.
Changes in turnover were not the same in all branches of the tourism industry. In some branches the turnover increased by 40%, while the turnover decreased in passenger air transport and service activities incidental to air transportation.
Revision of statistics
At the time of our press release on 29 August 2022, the VAT-turnover excluding the pharmaceutical industry, in May-June 2022 was estimated 1,124.3 billion ISK which was an increase of 35.29% compared with the same period in 2021. At present, more data are available and the turnover is estimated 1,125.1 billion ISK, an increase of 35.31%.
Other statistics on business economy
Statistics Iceland publishes annual income and balance statements of enterprises by activity, based on tax returns, providing a detailed picture of the individual sectors. Data on turnover should be evaluated in a larger context, taking into account other economic indicators, e.g. trends in external trade, employment and labour costs.
Statistics
All economic activities
The tourism industry