1. Market Research

Country Economic Forecasts > Iceland

  • 8 pages, published in May 2017
  • By Oxford Economics
  • Report Number: 1907573

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Continued double-digit expansion in Q4 2016 lifted full-year growth to 7.2% and 2017 growth is forecast just over 5%, well above the sustainable 2.5-3% trend and pushing inflation to over 3%. Overheating risks are raised by pressure to lower interest rates to curb ISK appreciation, and difficulty in maintaining the large fiscal surplus posted in 2016, with most public debt already paid down. But restored political stability, an external surplus over 8% of GDP and public spending restraint point to an orderly slowdown to about 3% in 2019-20.

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