A new issue of Statistical Series, presenting a revised economic forecast for 2020–2025, is now available.
GDP is expected to decrease by 8.4% in 2020. The poor outlook this year can be attributed to the Covid-19 pandemic, which has limited cross-border transport and had a significant impact on tourism in Iceland. A sharp turnaround is expected next year with a GDP growth of 4.9%. In the coming years, economic growth is expected to be in the range of 2.5% -2.9%. National expenditure is projected to decline by 4.4% this year and a 4.3% growth is forecasted next year.
Private consumption is expected to contract by 6.1% this year and unemployment to be on average 8.2%. Next year, private consumption is projected to increase by 5.5% with unemployment averaging 6.8%. Exports are projected to contract by over 30% this year, but recovery is expected next year with a 19% growth.
The last economic forecast was published on the 1st of November 2019. The next forecast is scheduled for October 2020.
Economic forecast - Statistical Series