Tag Archives: economy

It’s official – we’re in a depression: 16 percent drop of Svalbard’s economic activity in 2015 fueled by 40 percent drop in mining and transport

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A depression is defined as a 10 percent drop in economic activity or a downturn lasting more than two years. Svalbard has already blown through the first qualification with a 15.8 percent drop in activity in 2015 and stands a good chance of meeting the second this year.

The downturn was caused by a 39 percent drop in mining-related activity, which in turn fueled a 43.1 percent drop in transportation and storage, activity, according to Statistics Norway.

But despite the sharp downturn, employment in the archipelago actually rose one percent compared to 2014 due largely to increased activity in tourism and recreation, with tourism surpassing mining as the biggest employer. That may be a sign of Longyearbyen making a quick and drastic change from its century-long history as a coal mining one due to what the agency described as a “rapid growth in part-time jobs.”