Iceland: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Iceland

IMF Staff Country Reports, December 8, 2008

Source details

Canonical URL

Iceland: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Iceland

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: December 8, 2008
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451819380.002

Overview and main findings

• "Iceland’s 2008 Article IV Consultation shows that the long expansion is coming to an end, exposing the economy’s overstretched private sector balance sheets, large macroeconomic imbalances, and high dependence on foreign financing."
• "With external liquidity constraints binding, economic activity is expected to slow significantly from unsustainably high levels, inflation to remain well above target, and the current account to narrow."
• "Uncertainty surrounding the outlook is unusually large, dominated by significant downside risks, both external and domestic."

Outlook and projections

• Economic activity: "expected to slow significantly from unsustainably high levels."
• Inflation: "to remain well above target."
• Current account: "to narrow."
• External conditions: "external liquidity constraints binding."

Risks and uncertainty

• Unusually large uncertainty surrounding the outlook.
• Significant downside risks identified as both external and domestic.

Subjects and keywords

• Subjects: Banking, Financial institutions, Financial statements, Fiscal policy, Inflation, Loans, Prices, Public debt, Public financial management (PFM)
• Keywords: consultation, consultation informational annex, consumer confidence, CR, debit card turnover, deficit, Financial statements, foreign exchange position, Global, Inflation, ISCR, króna depreciation, Loans, price inflation

Content in this bundle

• _cr08367 — Executive Summary and Key Findings
  • _cr08367 — Executive Summary and Key Findings (Markdown version)
  • _cr08367 — Executive Summary and Key Findings (PDF)