IMF Staff Country Reports

Iceland: 2022 Article IV Consultation - Press Release; and Staff Report

June 27, 2022

Download PDF Order a Print Copy
Order a Print Copy

Preview Citation

Format: Chicago

Iceland: 2022 Article IV Consultation - Press Release; and Staff Report, (USA: International Monetary Fund, 2022) accessed November 21, 2024

Summary

This 2022 Article IV Consultation discusses that Iceland has weathered recent shocks to the economy relatively well. Well-designed policy measures and a solid health system eased the impact of the pandemic, allowing real gross domestic product and employment to recover strongly. Robust domestic demand and favorable terms of trade boosted output growth to 4.3 percent in 2021, despite slower recovery in tourism. Growth is expected to remain moderate in 2022 and the medium term. Careful policy coordination is required to entrench the recovery, stem risks and rebuild buffers to pre-pandemic levels. Policies should mitigate the flaring-up in inflation, external imbalances, and house prices. Structural reforms should facilitate economic diversification and make the economy more resilient to shocks. Diversification efforts should focus on easing regulatory burdens on start-ups and spurring innovation by leveraging Iceland’s human capital and advanced digital infrastructure. The new collective wage agreement can also foster diversification and resilience through better alignment of wage and productivity growth.

Subject: Economic and financial statistics, Financial services, International organization, Monetary policy, National accounts, Prices

Keywords: Central bank policy rate, Data standard, Global, Government finance statistics, Housing, Housing policy, Housing prices, Inflation, Inflation expectation, Liability positions vis-à-vis nonresident, Policy coordination, Rising prices, Steering inflation

Publication Details

  • Pages:

    78

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2022/193

  • Stock No:

    1ISLEA2022001

  • ISBN:

    9798400212222

  • ISSN:

    1934-7685

You May Also Be Interested In...

Kiribati: Agricultural Subsidies for Copra: Improving Efficiency and Equity and Balancing Trade-offs

November 21, 2024

Burkina Faso: Report on Government Finance Statistics Mission (March 18–29, 2024)

November 18, 2024

Quarterly Projection Model for the Bank of Ghana: Extensions and Applications

November 15, 2024

Libya: Technical Assistance Report-Redesign of Income Tax Forms

November 15, 2024