Iceland; 2013 Article IV Consultations and Third Post-Program Monitoring Discussions

• Main Author: International Monetary Fund
• Format: Report
• Language: unknown
• Subjects: Iceland
• Online Access: http://www.imf.org/external/pubs/cat/longres.aspx?sk=40863

This 2013 Article IV Consultation highlights that Iceland’s economy is on a path to recovery, but legacy vulnerabilities are weighing on growth. GDP growth—which reached 2.9 percent in 2011—slowed to 1.6 percent in 2012 amid private sector deleveraging and weak external demand. Unemployment has continued to decline however, standing at 5.1 percent in May, down from a peak of 9.2 percent in September 2010. Inflation has come down to 3.3 percent in June from a peak of 18.6 in January 2009, but remains above the central bank’s target of 2½ percent. The outlook is for modest growth, declining inflation, and improving fiscal and external position. Capital controls;Article IV consultation reports;Debt restructuring;Iceland;Financial sector;Economic indicators;Economic recovery;Monetary policy;Fiscal policy;Post-program monitoring;Press releases;Private sector;Staff Reports;external debt, central bank, public debt, current account