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.
Iceland Country Risk
The anti-establishment Pirate Party, in alliance with the left-wing Green Left, will likely head the next Icelandic government following early elections in the autumn of 2016. This government will likely lead an expansionary fiscal policy course, with negative consequences for the economy, and will be extremely unstable, raising the possibility of another round of early elections soon thereafter.
Iceland's economic rebound will remain in place in the coming quarters, driven predominantly by private consumption, which will be boosted by rising wages and improving house prices. Recent positive high-frequency indicators have prompted us to revise upward our forecast for real GDP growth in 2016 and 2017 to 4.2% and 3.5%, respectively.
We expect inflation In Iceland to rise back within the central bank's 2.5% target by year-end, bolstered by...