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

Iceland: 2025 Article IV Consultation-Press Release; Staff Report and Statement by the Executive Director for Iceland
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Volume/Issue: Volume 2025 Issue 141
Publication date: June 2025
ISBN: 9798229014298
$20.00
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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.

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