IMF Staff Country Reports

Iceland: Recent Economic Developments

Publication Date:

June 8, 1995

Summary:

This paper reviews economic developments in Iceland during 1990–95. It describes developments in the real economy, and examines monetary and exchange rate developments and policies and the transmission of monetary policy. The paper provides a detailed look at budgetary outcomes and the stance of fiscal policy for 1995. Determinants of past and present growth in Iceland are examined. Indicators of fiscal sustainability are used to argue for better public finances in Iceland. The paper also examines the Icelandic tax structure.

Series:

Country Report No. 1995/047

Subject:

Agroindustries Banking Budget planning and preparation Economic sectors Exchange rate policy Exchange rates Financial institutions Foreign exchange Public financial management (PFM) Sovereign bonds

Notes:

This report on recent economic developments in Iceland was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. In releasing this document for public use, confidential material may have been removed at the request of the member.