A new issue of Statistical Series, presenting the economic forecast for 2011-2016, is now available. The Icelandic economy is predicted to grow by 2.6% in 2011, and by 2.4% in 2012. Growth in private consumption and investments will be seen in 2011 and is also expected in the following years, while public consumption will contract during 2011 and 2012.
Increased consumption and investments are the driving forces of economic growth during the forecast period. The Icelandic króna is expected to remain weak which will support a substantial trade surplus.
Inflation in 2011 is forecast to be 4,1% and 4,2% in 2012, but will be close to the Central Bank's target rate after that. Unemployment will remain high but decreasing along with economic growth.
The last economic forecast was published on 8 July 2011. The next forecast is scheduled for April 2012.
Economic forecast, winter 2011 - Statistical Series