A new issue of Statistical Series, presenting the economic forecast for 2014-2018, is now available. Iceland‘s economy is predicted to grow by 2.7% during 2014, 3.3% in 2015 and 2.5-2.9% per annum for the remainder of the forecast. Private consumption growth is expected to be 3.9% for 2014 and 4% in 2015. For 2016 through 2018 private consumption is forecast to increase yearly by no less than 3%.

General business investment and residential construction are showing strong growth and large scale industrial investment is rebounding in 2015 through 2016 but will decrease in 2017.

Inflation is predicted to be a low 2.2% during 2014 due to exchange rate appreciation and modest wage agreements as well as low inflation in the economies of trading partners. The price of residential housing has been the major inflation driver during 2014. The forecast calls for 2.7 and 3% inflation in 2015 and 2016 respectively.

The Government's household debt relief program will have a considerable impact on household balance sheets in the beginning of 2015 providing support for increased private consumption during the forecast period.

The last economic forecast was published on 4th of July 2014. The next forecast is scheduled for April 2015.

Economic forecast, winter 2014 - Statistical Series