## Iceland: 2022 Article IV Consultation - Press Release; and Staff Report

_IMF Staff Country Reports, June 27, 2022_

## Source details

**Canonical URL:** [Iceland: 2022 Article IV Consultation - Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2022/06/27/iceland-2022-article-iv-consultation-press-release-and-staff-report-519993)

## Other formats

- [Markdown version](/en/publications/cr/issues/2022/06/27/iceland-2022-article-iv-consultation-press-release-and-staff-report-519993/index.md)
- [Structured JSON version](/en/publications/cr/issues/2022/06/27/iceland-2022-article-iv-consultation-press-release-and-staff-report-519993/index.json)
- [Bundle manifest](/en/publications/cr/issues/2022/06/27/iceland-2022-article-iv-consultation-press-release-and-staff-report-519993/bundle-manifest.json)

## Bibliographic details
- Published: June 27, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400212222.002

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### Macro outlook and recent performance
- Iceland "weathered recent shocks to the economy relatively well."
- Real gross domestic product and employment "recovered strongly" following the pandemic.
- Output growth was "4.3 percent in 2021," supported by robust domestic demand and favorable terms of trade, despite slower recovery in tourism.
- Growth is expected to "remain moderate in 2022 and the medium term."

### Risks and policy priorities
- Careful policy coordination is required to:
  - "entrench the recovery"
  - "stem risks"
  - "rebuild buffers to pre-pandemic levels"
- Policies should mitigate:
  - "the flaring-up in inflation"
  - "external imbalances"
  - "house prices"

### Structural reforms and diversification
- Structural reforms should "facilitate economic diversification and make the economy more resilient to shocks."
- Diversification efforts should focus on:
  - "easing regulatory burdens on start-ups"
  - "spurring innovation by leveraging Iceland’s human capital and advanced digital infrastructure"
- The new collective wage agreement can foster diversification and resilience through "better alignment of wage and productivity growth."

### Institutional and policy strengths
- "Well-designed policy measures and a solid health system eased the impact of the pandemic," supporting the recovery.

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## Content in this bundle

- **1. Key Macroeconomic Developments**
  - [1. Key Macroeconomic Developments (Markdown version)](/-/media/files/publications/cr/2022/english/1islea2022001.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Key Macroeconomic Developments (PDF)](/-/media/files/publications/cr/2022/english/1islea2022001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2022/06/27/iceland-2022-article-iv-consultation-press-release-and-staff-report-519993_