Iceland Economic Outlook
September 26, 2017News that the economy entered a technical recession in H1 was taken in stride in early September as fears of a harder landing following outsize growth last year were quelled. In fact, the further cool-off in Q2 came as a surge in imports—underpinned by the significant appreciation of the krona in Q2—outstripped notable improvements in household spending, fixed investment and exports. Furthermore, the modest slowdown appeared to allay concerns that the country’s booming tourism sector and soaring housing prices would overheat the economy. In mid-September, the coalition government collapsed after only one year in office following a clemency scandal that ensnared Prime Minister Bjarni Benediktsson. In the aftermath, snap elections were set for 28 October.
Iceland Economy Data
5 years of Iceland economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||4.94||0.0 %||Oct 13|
|Exchange Rate||115.1||0.07 %||Oct 13|
|Stock Market||1,339||-0.38 %||Oct 13|
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Iceland Economic Growth
September 26, 2017Although the economy is expected to continue cooling through H2 and into next year, the orderly slowdown in H1 suggests that any deceleration will be forgiving given the tight labor market and buoyant tourism sector. Fluctuations in the exchange rate, however, could threaten the external sector and the recovery in foreign investment. Our panelists expect GDP to expand 5.4% in 2017 and 3.3% in 2018.