Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This 2007 Article IV Consultation highlights that boom in private consumption in Iceland was facilitated by easing household credit conditions, tax cuts, rapidly rising housing and equity wealth, and an appreciating real exchange rate. As a result, the output gap peaked at over 5 percent in 2005, declining only modestly in 2006. Record current account deficits and credit downgrades early in 2007 caused little market disruption, in part reflecting a healthy financial sector. The exchange rate remained strong, and confidence in Icelandic banks stayed high.
Series:
Country Report No. 2007/295
Subject:
Banking External debt Financial institutions Fiscal policy Fiscal stance Inflation Loans National accounts Prices Private consumption
English
Publication Date:
August 29, 2007
ISBN/ISSN:
9781451819359/1934-7685
Stock No:
1ISLEA2007002
Pages:
42
Please address any questions about this title to publications@imf.org