A new issue of Statistical Series, presenting the economic forecast for 2014-2018, is now available. The Icelandic economy is predicted to grow by 2,7% in 2014 and by 3% in 2015. Private consumption is expected to grow by 3.5% in 2014 while investment will grow by 9.2%.  For 2015, private consumption is predicted to increase by 3.3% and by nearly 3% per year in 2016 - 2018.  In 2015 investment will grow by 18.2% and increase for the remaining years excluding 2017. Public consumption will grow by 0.7% in 2014, 0.8% in 2015 and nearly 2% per year during 2016 - 2018.

The government's planned debt relief program and aggregate real wage increases, bolstered by recent labour market growth, are expected to support private consumption during the forecast period. Inflation for 2014 is predicted to be 2.6%, markedly lower than previously forecast. Wage negotiations have been concluded in the private sector for 2014 but are ongoing in the public sector.

The last economic forecast was published the 15th of November 2014. The next forecast is scheduled for late June 2014.

Economic forecast, spring 2014 - Statistical Series