Economic forecast, summer 2017
Iceland’s GDP grew by 7.2% in 2016, fueled by a boom in tourism as well as strong private consumption and investment. In 2017 GDP is expected to grow by 6%, private consumption by 6.9% and investment by 9.8%. The pace of growth will slacken somewhat in 2018 when GDP is expected to grow by 3.3%, private consumption by 5.2% and investment by 4%. More modest growth is expected during the remainder of the forecast period, where economic growth is predicted to be between 2.5–2.8%, private consumption and investment are estimated to grow between 2.5–3.4% and 2.7–4.8% respectively. Public consumption‘s share of GDP will be decreasing with a subdued growth of 1.2–1.8% through the forecast period.