Iceland Economic Outlook
May 28, 2019The economy looks set to plummet in the second quarter, after a likely battering in the first quarter. As in Q1, a sharp downturn in the pivotal tourism and fishing sectors will lead Q2’s tumble. In late March, WOW Air collapsed, while Icelandair continues to be plagued by the grounding of Boeing’s 737 MAX. Against this backdrop, tourist arrivals fell by nearly a fifth in April—the largest contraction on record—and airport traffic fell by more than a quarter; and the woes of the tourism sector seem set to drag on well into this quarter and beyond. Meanwhile, fishing vessels again failed to find any capelin—an economically important fish for the sector—in April, severely slashing the total catch volume for the month and weighing on exports in turn.
Iceland Economic GrowthGrowth prospects for this year are rapidly disintegrating, with the collapse of inbound tourism amid WOW Air’s bankruptcy set to hammer the currency, employment, investment and exports. A no-deal Brexit and slower Eurozone growth are also main downside risks. Our panelists are still adjusting their forecasts to recent events, and further downgrades are likely in coming months. Met the why particular panelists expect GDP to rise 1.3% in 2019, which is down 1.0 percentage point from last month’s forecast, and 2.6% in 2020.
Iceland Economy Data
5 years of Iceland economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||4.09||-0.99 %||Jun 13|
|Exchange Rate||125.4||-0.52 %||Jun 13|
|Stock Market||1,447||-0.32 %||Jun 13|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.