Iceland: Recent Economic Developments
Summary:
This paper reviews economic developments in Iceland during 1990–96. It analyzes the origins of the current economic expansion associated with a swing in the current account and in emerging inflation pressure. Three driving forces are emphasized: the positive supply shock affecting the fisheries; the expansion of the power intensive industry; and brisk increases in real wages over the past two years (1995–96). The paper highlights that the main sources of upside risks comprise the likely construction of a new aluminum smelter.
Series:
Country Report No. 1997/015
Subject:
Balance of payments Current account Current account imbalances Expenditure Output gap Personal income tax Production Taxes
English
Publication Date:
April 8, 1997
ISBN/ISSN:
9781451819205/1934-7685
Stock No:
1ISLEA0011997
Pages:
139
Please address any questions about this title to publications@imf.org