Iceland Economic Outlook
December 20, 2018The Icelandic economy slowed markedly in the third quarter, despite a robust performance from the crucial tourism sector which supported private outlays. The downswing was due exclusively to lower fixed investment, itself driven by a sharp contraction in business investment and a softer decline in residential construction investment. On the flipside, public investment surged in the quarter, both private and public spending growth picked up slightly, while the external sector’s growth contribution improved thanks to a rebound in exports, despite a marginal recovery in imports. Meanwhile, the country appears to be headed towards difficult wage negotiations in coming months, as the powerful labor unions push for steep minimum wage increases
Iceland Economic GrowthA fading tourism boom will likely cause the economy to slow next year. Softer momentum in the sector could also impact the construction and housing industries, hitting residential investment growth. Our panelists expect GDP to rise 2.7% in 2019, which is down 0.1 percentage points 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||5.49||-0.99 %||Jan 14|
|Exchange Rate||120.7||-0.52 %||Jan 14|
|Stock Market||1,227||-0.32 %||Jan 14|
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