The Icelandic Fisheries Minister has decided to abandon the 25% catch rule for cod and that the cod quota in the next fishing year shall be 130 thousand tonnes, in line with recommendations by the Marine Research Institute. The cut represents a reduction by one third from the current fishing year, the current quota being 193 thousand tonnes.
According to Glitnir Research's estimate, the cut in the quota to 130 thousand tonnes leads to a contraction in export revenue by ISK16bn in the next fishing year, compared with the current fishing year, and almost a 0.7% contraction in GDP, thereof a 0.2% contraction this year. The impact could however be weaker.
The prime minister presented the fisheries minister's decision on the quota at a press conference on Friday, along with the government's mitigating measures. The financial market showed some reaction to the news and the ISK depreciated somewhat.
