Iceland: Recent Economic Developments

April 8, 1997

Preview Citation

Format: Chicago

Iceland: Recent Economic Developments, (USA: International Monetary Fund, 1997) accessed September 19, 2024

Summary

This paper reviews economic developments in Iceland during 1990–96. It analyzes the origins of the current economic expansion associated with a swing in the current account and in emerging inflation pressure. Three driving forces are emphasized: the positive supply shock affecting the fisheries; the expansion of the power intensive industry; and brisk increases in real wages over the past two years (1995–96). The paper highlights that the main sources of upside risks comprise the likely construction of a new aluminum smelter.

Subject: Balance of payments, Current account, Current account imbalances, Expenditure, Output gap, Personal income tax, Production, Taxes

Keywords: Asset price development, Consumer price inflation, CR, Current account, Current account imbalances, Current account sustainability, Demand, Europe, Global, HP filter, Investment goods, ISCR, Market, Output gap, Personal income tax, Saving rate, Saving-investment imbalance, Tax system

Publication Details

Pages:

139
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 1997/015
Stock No:

1ISLEA0011997
ISBN:

9781451819205
ISSN:

1934-7685

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