Atlantica - 01.12.2004, Page 63

AT L A N T I C A 61
ATLANTICA BUSINESS SECTION
BOOM TOWN
2,0
3,9
23,5
33,3
21,6
14,7
1,0
50,5
32,7
14,9
2,0
7,7
66,3
19,2
6,7
Company Profits
Will company profits rise or fall in 2005?
Economic Growth
What is your forecast for economic
growth in 2005?
Foreign Investment in Iceland
Will foreign investment increase
or decrease over the next 5 years?
SURVEY OF THE TOP 300 COMPANIES IN ICELAND
It’s beginning to look very bullish around Iceland. As the year winds down, economic forecasters
turn towards 2005, and their prognosis for the Icelandic economy is good.
“The economic outlook is bright,” says Jón G. Hauksson, editor of Frjáls Verslun (Free Enterprise),
Iceland’s most popular business magazine.
Frjáls Verslun’s annual survey of the CEOs of the top 300 companies, published annually in “300
Staerstu” (300 Largest), shows that business leaders think the economy will continue to grow, infla-
tion will hover low, around 4 per cent, there will be an increase in mergers, profits will rise, unem-
ployment will remain low, and the stock market will stay high, although it will slightly taper off.
“Iceland’s biggest companies are expanding abroad, with five out of the top ten companies locat-
ing a majority of their activities and functions overseas,” the survey in 300 Staerstu reveals.
If there are any areas for concern, it’s that inflation might rise slightly, the strength of the Icelandic
krona will moderate, and the high price of oil will have a negative affect on the economy.
But the CEOs of the top 300 Icelandic companies fundamentally believe that as labour and capital
increases, both from foreign and local investment, 2005 will boom.
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