Iceland : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Iceland

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

June 22, 2016

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper provides an assessment of the economic conditions, outlook, and crises in Iceland. There is a mounting sense that capital controls hurt growth prospects, repressing local financial markets, scaring foreign investors, and impeding savings diversification, and that it is time for them to go. Recent settlements with the bank estates are a huge step forward, improving already favorable macroeconomic conditions. At 4 percent in 2015 and gaining pace, real GDP expansion is among the fastest growing in Europe, opening up a positive output gap. However, the biggest risk for Iceland is overheating. Large wage awards on top of already hot economic readings speak to Iceland’s boom-bust history.

Series:

Country Report No. 16/179

Subject:

English

Publication Date:

June 22, 2016

ISBN/ISSN:

9781475563603/1934-7685

Stock No:

1ISLEA2016001

Format:

Paper

Pages:

59

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