No, the image is not compressed or blurred - you are just using/viewing it wrong.
If you provide information about the image viewer/engine/renderer you're using someone can help you.
Pixel art, especially this small (16x16) would be _tiny_ to view on your (for example 1920x1080) monitor. Whatever you are using to display this image will upscale it. Your screenshot shows you are clearly using some (bi-)linear texture upscaling. For pixel art, you'll always want to use nearest neighbor texture filtering to preserve the crisp edges.