## 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](https://www.imf.org/en/publications/cr/issues/2016/12/31/iceland-staff-report-for-the-2005-article-iv-consultation-18624)

## Other formats

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## Bibliographic details
- Published: October 14, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451819304.002

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### 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

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/iceland-staff-report-for-the-2005-article-iv-consultation-18624_