Iceland: Fourth Post-Program Monitoring Discussions-Staff Report; Press Release; and Statement by the Executive Director for Iceland

Publication Date: July 10, 2014
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Summary: This paper discusses Iceland’s Fourth Post-Program Monitoring Discussions. Iceland’s economy has grown strongly on the back of booming tourism. Real GDP grew 3.3 percent in 2013, despite a drop in investment spending. Net exports were the primary driver. High frequency indicators suggest strong net exports—including steady growth in off-season tourism—have continued in Q1 2014, along with rising private consumption. Inflation has fallen below the Central Bank of Iceland’s 2.5 percent target but long-term inflation expectations remain noticeably above this level. The government’s medium-term fiscal objectives deserve support, but further effort is needed to achieve them.
Series: Country Report No. 14/194
Subject(s): Post-program monitoring | Economic growth | Fiscal policy | Capital account liberalization | Monetary policy | Inflation targeting | Financial sector | Bank supervision | Capital controls | Economic indicators | Debt sustainability analysis | Staff Reports | Press releases | Iceland

Publication Date: July 10, 2014
ISBN/ISSN: 9781498308106/1934-7685 Format: Paper
Stock No: 1ISLEA2014001 Pages: 63
US$18.00 (Academic Rate:
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