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
We expect divisions in Icelandic politics to become ever starker as the schisms exposed by the country's response to the migrant crisis and Paris terror attacks come to the fore. An initially welcoming stance has moderated following Paris, and we expect to see rhetoric from the pro-immigration Pirates, and the more reticent Progressive Party wing of the coalition government to escalate further.
Strong high-frequency economic indicators have prompted us to revise up our real GDP Iceland's real GDP for 2016 and 2017. The economy remains on a solid footing, driven by sustained rebound in domestic demand, with private consumption being the main driver of growth in the coming quarters.
Inflationary pressures will build up in 2016 from rising wages and FX pass through. This will necessitate continued tightening by the Central Bank of Iceland,...