Iceland: Staff Report for the 2012 Article IV Consultation and First Post- Program Monitoring Discussion
April 12, 2012
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The 2012 Article IV Consultation reports that Iceland’s fiscal consolidation is continuing, but at a slower pace. Moderate expenditure overruns materialized in 2011, which will partly spill over to 2012 and the medium term. A key priority is to put the medium-term fiscal path back on track, which can be achieved with additional fiscal measures of ½ percent of GDP. Lifting the capital controls remains an overarching policy challenge, given the significant locked-in funds.
Subject: Balance of payments, Banking, Capital controls, External debt, Financial institutions, Fiscal stance, Income, Loans, National accounts, Public debt
Keywords: anchor inflation expectation, Capital controls, CR, Europe, FDI route, Global, Income, inflation expectation, inflation outlook, ISCR, Loans, monetary policy committee, pushed inflation
Pages:
69
Volume:
2012
DOI:
Issue:
089
Series:
Country Report No. 2012/089
Stock No:
1ISLEA2012002
ISBN:
9781475503111
ISSN:
1934-7685
