Iceland

In-depth country-focused analysis on Iceland's economic, political and operational risk environment, complemented by detailed sector insight

Iceland

Our comprehensive assessment of Iceland's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Iceland, as well as the latest industry developments that could impact Iceland's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Iceland before your competitors.

Country Risk

Iceland Country Risk

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Core Views

  • Support for the coalition government has declined significantly since it was elected, its cohesiveness will continue to be tested in a tricky period for future of the economic recovery.

  • The overall macroeconomic backdrop is increasingly healthy, though this is partly due to the artificial support of capital controls.

  • Though the government remains cautious the complex process of removing capital controls still poses potentially massive risks to economic stability.

Major Forecast Changes

  • We have revised our inflation and interest rate projections for 2015 and 2016 as wage increases are likely to stoke inflation. We now forecast the policy rate to increase to 6.00% by end-2015. We maintain our forecast of 6.50% at end-2016. Inflation will pick up to average 1.5% in...

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