A new issue of Statistical Series, presenting the economic forecast for 2017-2022, is now available.

Iceland’s GDP grew by 7.2% in 2016, fueled by a boom in tourism as well as strong private consump­tion and investment. In 2017 GDP is expected to grow by 6%, private consumption by 6.9% and investment by 9.8%. The pace of growth will slacken somewhat in 2018 when GDP is expected to grow by 3.3%, private consumption by 5.2% and investment by 4%. More modest growth is expected during the remainder of the forecast period, where economic growth is predict­ed to be between 2.5–2.8%, private consumption and investment are estimated to grow between 2.5–3.4% and 2.7–4.8% respectively. Public consumption‘s share of GDP will be decreasing with a subdued growth of 1.2–1.8% through the forecast period.

Recent indications point to stronger private consumption growth in 2017 and 2018 than previously forecast. Private consumption growth is expected to be modest during 2019–2022. Large scale industrial investment will contract during 2018–2020, while regular business investment growth will decline but residen­tial investment growth will continue to be robust.

The last economic forecast was published on the 17. of February 2017.  The next forecast is scheduled for November 2017.

Economic forecast, summer 2017 - Statistical Series