To Iceland, 'pain wallet' because of Europe's most expensive spending

With an average price 56% higher than the rest of the continent, Iceland ranks first in the list of Europe's most expensive countries.

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Iceland tourist.
Hot springs in Iceland are no longer the only thing that makes tourists sweat. Plus, when you look at hotel expenses or the lunch bill, you'll realize that most of the prices are high, sometimes more than anywhere else in Europe. According to Eurostat statistics office data, in 2018, in Iceland, the average consumer price was 56% higher than the rest of the continent. Photo: Hurb.
Iceland tourist.
This makes Iceland the most expensive country. The countries behind are Switzerland (52%), Norway (48%), Denmark (38%) ... To avoid unpleasant surprises, Quint Johnson, a tourist from the US, said he sought information before coming to Iceland to spend a week traveling with your family. Photo: Newseweek.
Iceland tourist.
However, "it was a bit of a shock," the 22-year-old student told AFP when he discovered the prices of familiar items like hamburgers with chips and beer. Looking through the menu at a restaurant in Iceland, you know that a simple cheese pizza will "pickpocket" customers about 19 USD, a glass of wine costs at least 11 USD and a liter of beer is about 8 USD. Photo: Joyenchantee.
Iceland tourist.
"This price is too expensive compared to normal," Johnson said. "At home, I can get a meal that includes a hamburger, chips and beer for about 12-13 dollars." Photo: Icelandmag.
Iceland tourist.
Iceland tourist.
According to Numbeo, a consumer price comparison website, dinner for two at an average restaurant costs about $ 95. Bottle of wine is about 19 USD and 12 eggs cost 5.6 USD. Photo: Chrismoe83, Bianca_olsson.
Iceland tourist.
With 355,000 inhabitants and a high reliance on imported goods, high taxes on alcohol all explain Iceland's expensive consumer prices. "Iceland's area is too small. Therefore, the size of the economy here is difficult to keep up with countries that are 100 times larger, these places are easy to attract many businesses," said Konrad Gudjonsson, economist at Icelandic trade room said. Photo: Woohoo.
Iceland tourist.
The law also plays a part in making Iceland expensive. Imported products such as raw eggs or unpasteurized milk face customs barriers. The huge currency fluctuations of Iceland in 2016-2017 also contributed to the overall price increase. Gudjonsson points to the strong link between expensive prices and national standards of living. In particular, the productivity of Icelandic people is very high. Photo: Indiafilings.
Iceland tourist.
According to statistics of the Iceland authorities, in 2018, the average monthly pre-tax salary for full-time workers was $ 4,992. So while tourists may be shocked at prices in Iceland, the salaries of locals allow them to freely consume. "We have to take into account wages. Iceland is one of the countries with the highest average wages in Europe," said Breki Karlsson, president of the Iceland Consumer Association. Photo: Gregorygerault.
Iceland tourist.
According to central bank forecasts, Iceland is heading to a more difficult time. The country's tourism industry worsened after the low-cost airline Wow Air of Iceland went bankrupt. Meanwhile, the fishery industry was attacked by the sudden disappearance of capelin fish in the waters of Iceland. The government did not enact this economically important fishing quota in 2019. Photo: Agrobk.
Iceland tourist.
Gudjonsson, the representative of the Iceland Chamber of Commerce, said: "Housing costs are declining as consumer goods and services increase." The current average rental for a one-bedroom apartment in Reykjavik downtown is around $ 1,450 / month. Photo: Modulus.

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