Iceland: Staff Report for the 2005 Article IV Consultation
IMF Staff Country Reports, October 14, 2005
Source details
- Canonical URL
- Iceland: Staff Report for the 2005 Article IV Consultation
Other formats
Bibliographic details
- Published: October 14, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451819304.002
Executive summary and key findings
- New projects have rekindled rapid growth and the economy is exhibiting signs of overheating.
- Imbalances are evident in inflation, the current account, and external debt.
- GDP grew at an average rate of 3.8 percent between 1995 and 2004, second only to Ireland among industrial countries.
- Major investment projects have contributed both to the high growth rate and to overall macroeconomic volatility because of their size relative to that of the economy.
Macroeconomic indicators and vulnerabilities
- Average GDP growth (1995–2004): 3.8 percent.
- Areas of imbalance identified:
- Inflation
- Current account
- External debt
- Role of investment projects:
- Major investment projects have materially raised growth.
- The size of these projects relative to the economy has contributed to macroeconomic volatility.
Thematic focus (as listed in source)
- External debt
- Financial institutions
- Prices
Keywords and policy-relevant terms (as listed in source)
- CR, data ROSC exercise, deficit, GDP, Housing prices, Inflation, inflation prospect, inflation stabilization task, inflation-targeting monetary policy framework, investment project, ISCR, loan, Loans, monetary policy, monetary policy meeting, monetary policy stance, mortgage credit condition, Mortgages, state telecommunication company, tolerance range