| Summary: | The 2012 Article IV Consultation reports that Iceland’s fiscal consolidation is continuing, but at a slower pace. Moderate expenditure overruns materialized in 2011, which will partly spill over to 2012 and the medium term. A key priority is to put the medium-term fiscal path back on track, which can be achieved with additional fiscal measures of ½ percent of GDP. Lifting the capital controls remains an overarching policy challenge, given the significant locked-in funds. Capital controls;Banking sector;Bank restructuring;Article IV consultation reports;Debt restructuring;Debt sustainability analysis;Economic indicators;Economic recovery;Private sector;Post-program monitoring;Public information notices;Staff Reports;Monetary policy;Iceland;Fiscal policy;capital account liberalization, external debt, central bank, balance of payments
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