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
Despite the rapid rise in popularity of Iceland's anti-establishment Pirate Party, we remain sceptical that it will win power in the April 2017 general elections. Instead, the Pirates' popularity will prompt the ruling coalition to pursue a more expansionary fiscal policy in 2016, which will allow it to regain public support.
Iceland's economic rebound will slow modestly in 2016, due to weaker demand from the eurozone and rising uncertainty around the lifting of capital controls this year.
The Icelandic krona will come under pressure with the start of capital account liberalisation in the coming months. Krona depreciation will add to rising wage-pull inflationary pressures in H116, warranting monetary tightening, which will stabilise the currency in H216.