Iceland‘s GDP grows by 4.3% in 2016 due to strong private consumption and investment.

A new issue of Statistical Series, presenting the economic forecast for 2016 -2021, is now available.

Economic growth is predicted to reach 4.3% in 2016, 3.5% in 2017  and nearly 3% yearly during 2018 – 2021.  A sharp increase in private consumption  and strong investment drive growth during 2016 and 2017.  More moderate growth of nearly 3% per annum is forecast for the later years, in line with comparatively modest wage increases and contraction and investment growth.

A boom in tourism is responsible for most of the export growth in the first years.  A trade surplus is expected for the forecast period.

Conditions have favoured low inflation in recent years.  However, it‘s predicted that inflation will rise in late 2016 and remain somewhat above the Central Bank‘s  target rate into the later forecast years.

The last economic forecast was published on the 29th of February 2016.  The next forecast is scheduled for November 2016.

Economic forecast, summer 2016 - Statistical Series