Iceland: 2024 Article IV Consultation-Press Release; and Staff Report

Author: International Monetary Fund. European Dept.

Volume/Issue: Volume 2024 Issue 221

Publication date: July 2024

ISBN: 9798400282560

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Topics covered in this book

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Banks and Banking , Inflation , Economics- Macroeconomics , monetary policy stance , holdings of SDR , calibrating Policy , inflation expectation , EU regulations-credit bureaus , Inflation , Central bank policy rate , Housing prices , Fiscal rules , Global

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Summary

Economic Developments. Following an impressive recovery from the covid pandemic and commodity price shocks in recent years, a coordinated tightening of monetary and fiscal policies has successfully slowed domestic demand growth, strengthened the current account, and started to lower inflationary pressures. Recent volcanic activity has disrupted lives and livelihoods, but the macroeconomic impact is limited.