IMF Staff Country Reports

Iceland: 2025 Article IV Consultation-Press Release; Staff Report and Statement by the Executive Director for Iceland

June 24, 2025

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Format: Chicago

International Monetary Fund. European Dept. "Iceland: 2025 Article IV Consultation-Press Release; Staff Report and Statement by the Executive Director for Iceland", IMF Staff Country Reports 2025, 141 (2025), accessed June 25, 2025, https://doi.org/10.5089/9798229014298.002

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Summary

Following a strong rebound after the pandemic, a successful tightening of fiscal and monetary policies has slowed domestic demand growth and reduced inflationary pressures. The challenges now are to fully return inflation to target while ensuring a soft landing for the economy; build resilience by gradually increasing fiscal buffers; and strengthen productivity and further diversify the economy to support medium-term growth and reduce Iceland’s vulnerability to shocks.

Subject: Expenditure, Financial sector policy and analysis, Financial sector stability, Housing, Housing prices, Income, Inflation, Labor, Labor markets, National accounts, Pension spending, Prices, Production, Productivity, Public debt

Keywords: Artificial intelligence (economics), Central bank policy rate, Financial sector stability, Housing, Housing prices, Income, Inflation, Labor markets, Pension spending, Productivity

Publication Details

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