Iceland Economic Outlook
February 26, 2019The economy likely ended 2018 on a weaker note, after significantly decelerating in Q3 on the back of a sharp contraction in both business and residential investment. Softer tourism growth, following years of surging visitor inflows, should have put a lid on growth in Q4. This is reflected by overnight tourist stays, which rose only modestly in December after a flat November print, thus weighing on hotel occupancy rates. Lastly, although consumer confidence tumbled in November, solid wage growth and a low unemployment rate should have supported private consumption in the quarter.
Iceland Economic GrowthGrowth should slow this year as the tourism boom fades, which could impact activity and investment in the construction and housing sectors. In addition, the country is vulnerable to a growth slowdown in Europe, as well as from a shortage of skilled workers owing to the tight labor market. Our panelists expect GDP to rise 2.7% in 2019, which is unchanged 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.
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|Bond Yield||4.98||-0.99 %||Mar 11|
|Exchange Rate||121.3||-0.52 %||Mar 11|
|Stock Market||1,301||-0.32 %||Mar 11|
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