Iceland Economic Outlook
October 23, 2018After reaching a one-and-a-half year high in the second quarter—thanks to private consumption and residential construction investment—economic growth should have remained robust in the third quarter, particularly thanks to solid inflows of tourists during the country’s high season. Although overnight stays were stable year-on-year in June and July—due to a high base effect from 2017’s strong performance—they increased more than 11% in August. Meanwhile, the recently unveiled 2019 draft budget calls for a large expenditure increase while maintaining a sizable budget surplus, with new spending focused on infrastructure, healthcare, housing and social support.
Iceland Economic GrowthGrowth should moderate overall in 2019 and 2020 due to slowing private consumption—as slack eventually develops in the labor market— though tourism and infrastructure-related investment will likely remain robust. Our panelists expect GDP to rise 2.9% in 2019, which is down 0.1 percentage points from last month’s forecast, and 2.8% in 2020.
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||5.84||-0.99 %||Nov 15|
|Exchange Rate||124.0||-0.52 %||Nov 15|
|Stock Market||1,266||-0.32 %||Nov 15|
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