Iceland: Staff Report for the 2003 Article IV Consultation
IMF Staff Country Reports, August 29, 2003
Source details
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- Iceland: Staff Report for the 2003 Article IV Consultation
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Bibliographic details
- Published: August 29, 2003
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451819243.002
Summary and principal findings
- Rapid growth during the second half of the 1990s led to overheating and the emergence of financial vulnerabilities by the end of the decade.
- Over the medium term, investment projects will impart a significant impetus to economic activity, and output will grow for some years above its long-term trend pace.
- There are significant upside risks to this medium-term central scenario.
- Executive Directors supported the authorities' view that macroeconomic policies would have to remain restrictive to counteract the expected demand pressures over the medium term.
Policy implications and recommendations
- Maintain restrictive macroeconomic policies to offset expected demand pressures associated with the medium-term investment-driven expansion.
Subjects and keywords
- Subject: Balance of payments, Banking, Current account deficits, Exports, External debt, Financial Sector Assessment Program, Imports, Income, International trade, National accounts
- Keywords: CR, Current account deficits, debt, debt ratio, exchange rate, Exports, foreign currency, Global, Imports, Income, inflation-targeting monetary policy framework, investment, investment boom, investment project, ISCR, net government debt, private sector, privatization program, Treasury budget