8. Recovery after COVID-19 and emerging challenges

The coronavirus pandemic caused unprecedented conditions in Icelandic society, as it has around the world. Since the outbreak began in February 2020, the Icelandic government’s goals and reactions to the epidemic have been clear: ensure that the necessary infrastructure, especially the healthcare system, is prepared to cope with the pressures that arise as a result of the disease’s proliferation.

The government’s decisions related to COVID-19 can be divided into three categories: decisions to contain the spread of the epidemic, decisions on countermeasures to respond to economic damage caused by quarantine restrictions, and decisions related to social and health challenges. The government is now considering the long-term effects of the epidemic on vulnerable groups, taking multiple effects of the epidemic on the community into account, and taking measures as needed. The government is taking short-term measures when necessary, responding to urgent situations or problems, and also implementing long-term actions such as reforms and improvement plans.

The Icelandic government has taken various measures to reduce the negative impact of the epidemic on vulnerable groups. In 2020 and 2021, the government spent ISK 4.2 billion on such measures. The cost incurred due to the epidemic is incalculable, including due to the reinforcement of the healthcare system and other necessary measures taken to respond to the economic impact. The pandemic has affected the progress towards achieving the Sustainable Development Goals (SDGs) in Iceland, as it has in many other countries. One of the most significant impacts has been on SDG 3, which aims to ensure health and well-being for all. The pandemic has put a strain on the healthcare system that has led to a disruption in regular healthcare services, including routine check-ups, elective surgeries, and mental health services. Additionally, the pandemic has caused an increase in mental health issues and has exposed inequalities in access to healthcare services for vulnerable groups.

The pandemic has also impacted SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The pandemic has caused an economic downturn, with some sectors being hit harder than others. The government has implemented various measures to support businesses and individuals affected by the pandemic, but there have still been job losses and economic challenges. Overall, the pandemic has highlighted the importance of resilience and preparedness in achieving the SDGs, particularly in the areas of health and economic development. Consequently, the government is monitoring the long-term social and health impact on vulnerable groups and has allocated ISK 3 billion for the years 2023-2025 to finance the mitigation of this impact.

Worldwide, the COVID-19 pandemic exposed how fragile many of our systems are when tested, and the world will be dealing with the consequences for a long time. The pandemic, and the global response to it, derailed much hard-won progress towards the SDGs with its hit
 to health, education, income, and gender equality. The climate crisis is a continuing threat as current actions and plans will not be enough to avert a catastrophe. Furthermore, the consequences of Russia’s illegal and unprovoked invasion into Ukraine are terrible for the people of Ukraine with tremendous impact on infrastructure and nature. All over the world, people are effected due to economic turmoil and food insecurity caused by the invasion.