A new issue of Statistical Series, presenting the economic forecast for 2013-2018, is now available. The Icelandic economy is predicted to grow by 1.7% in 2013 and by 2.7% in 2014. Private consumption is expected to grow by 1.9% in 2013 while investment will contract by 3.6%. For 2014, private consumption is predicted to increase by 3% and investment by 14.1%. Public consumption will grow by half a percent in 2013 but remain flat for 2014 and 2015, with slow growth predicted for 2016 through 2018.

Robust private consumption growth and strengthening of the labour market during the first half of 2012, lost some steam during the second half of 2013. Strong labour market growth has resumed in the first half of 2013 but private consumption growth is lagging. The inflation outlook has improved markedly but terms of trade have worsened slightly. Excluding 2013, investment is growing while remaining low in historical perspective.

The last economic forecast was published the 12th of April 2013. The next forecast is scheduled for November 2013.

Economic forecast, summer 2013 - Statistical Series