Iceland Economic Outlook
April 30, 2019The economy appears to have taken a hit in the first quarter, reflecting a poor performance in the key sectors of fishing and tourism. The total fish catch nosedived through the quarter as vessels failed to find any capelin, one of the industry’s primary exports by volume. Turning to tourism, data shows a slight decline in overnight stays in January and February, while March traffic data for the island’s main airport corroborates a slowdown in the sector in the quarter. Moreover, the tourism sector’s woes will likely be amplified, in Q2 and beyond, by the recent collapse of low-cost airline WOW Air on 28 March. The Central Bank said the collapse will likely dent economic growth noticeably, though it does not pose a serious risk to financial stability.
Iceland Economic GrowthEconomic growth is expected to slow markedly this year as the country’s tourism boom fades, which will likely weigh particularly on residential investment and the construction sector. Furthermore, a marked slowdown in the Eurozone, Iceland’s main trade partner, remains a principal downside risk to the outlook. Our panelists expect GDP to rise 2.3% in 2019, which is down 0.4 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.
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|Bond Yield||4.25||-0.99 %||May 13|
|Exchange Rate||122.8||-0.52 %||May 13|
|Stock Market||1,477||-0.32 %||May 13|
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