The Icelandic economy has now been growing for eight straight years, and will continue to expand at a healthy pace until 2024, according to the latest economic forecast from Statistics Iceland.
The expected growth rate for 2018 has been revised upward from June to 3.8%, and that of 2017 to 4%. Statistics Iceland has not revised its projected growth rate for the next years, expecting the economy to grow on average 2.6% annually in 2019-2024. Next year Iceland's Gross Domestic Product is expected to grow 2.5%, and between 2.4% and 2.7% in 2020-2024
Growth in coming years will mostly be driven by private consumption, Statistics Iceland expects. Private consumption is expected to grow by 4.9% this year, slowing to 3.8% in 2019 and then dropping to 2.5%-3% in 2020-2024. The growth in public consumption is expected to be robust in the year 2018 or 3.3% but is expected to be around 2% in the later years. Private consumption has been powered by strong wage growth in recent years, a trend Statistics Iceland expects to continue.
Inflation is expected to tick up, primarily due to the weakening of the Icelandic Króna. The consumer price index is expected to rise 2.7% in 2018, rising to 3.6% in 2019, before dropping in the following years.
Read more: Icelandic Króna could still depreciate more economists predict: Dropped 11% since July
The Icelandic economy has now been growing for eight straight years, and will continue to expand at a healthy pace until 2024, according to the latest economic forecast from Statistics Iceland.
The expected growth rate for 2018 has been revised upward from June to 3.8%, and that of 2017 to 4%. Statistics Iceland has not revised its projected growth rate for the next years, expecting the economy to grow on average 2.6% annually in 2019-2024. Next year Iceland's Gross Domestic Product is expected to grow 2.5%, and between 2.4% and 2.7% in 2020-2024
Growth in coming years will mostly be driven by private consumption, Statistics Iceland expects. Private consumption is expected to grow by 4.9% this year, slowing to 3.8% in 2019 and then dropping to 2.5%-3% in 2020-2024. The growth in public consumption is expected to be robust in the year 2018 or 3.3% but is expected to be around 2% in the later years. Private consumption has been powered by strong wage growth in recent years, a trend Statistics Iceland expects to continue.
Inflation is expected to tick up, primarily due to the weakening of the Icelandic Króna. The consumer price index is expected to rise 2.7% in 2018, rising to 3.6% in 2019, before dropping in the following years.
Read more: Icelandic Króna could still depreciate more economists predict: Dropped 11% since July
