During the first five months of this year the value of exported marine products was ISK 87.3 billion (bn) or around 38% of the total value of Iceland's exports for the period. As cod is the most important species, comprising 43% of total catch value of Icelandic vessels in Q1 2010, the TAC increase is a major boost. 

While for decades TACs and cod catches all too often exceeded MRI¿s advice, the adoption of a catch rule and specific utilisation strategy in recent years has significantly improved the situation. The same is not true, however, for many other species, where catches remain substantially more than MRI advises. For example, the Minister's decision sets the TAC for haddock for the coming fishing year at 50 thousand tonnes, while MRI proposed a limit of 45 thousand tonnes. The TACs for pollock, Greenland halibut and wolffish, for instance, are 50 thousand, 13 thousand and 12 thousand tonnes respectively, while the MRI recommendations were for TACs of 40 thousand, 5 thousand and 8.5 thousand tonnes respectively. 

Labour market in Q2 2010
SI will also publish the results of its labour force survey for Q2 2010 in its publication Hagtíðindi on Wednesday. The impact of the recession was clearly visible in the Q1 survey: the participation rate was lower, working hours shorter, part-time work more common and unemployment higher than has generally been the case in Iceland - all well-known symptoms of economic downturns like the one gripping Iceland since the banks' collapse. Unemployment averaged 7.6% during the quarter, which is somewhat higher than the 7.1% of Q1 2009, and a far cry from the 2.3% of Q1 2008. The increase was especially striking in the number unemployed for 6 months or longer, who comprised around 40% of total unemployed. Unemployment as reported in SI's labour force survey generally increases QoQ in Q2, and a similar outcome this year would be no surprise. In Q2 2009, unemployment rose by two full percentage points QoQ from 7.1% to 9.1%.

In tandem with the wage index on Wednesday, SI will publish the payment smoothing index which will apply in August; this index reflects developments in the wage index and unemployment level. In July the payment smoothing index rose by 0.9% MoM, due to lower unemployment in May 2010 than in May of the previous year. The payment smoothing index was 97.6, and debt service for persons whose housing mortgages are governed by it was therefore similar to its level at the beginning of 2009.