A new issue of Statistical Series, presenting the economic forecast for 2011-2016, is now available. The forecast predicts that the Icelandic economy will grow by 2.5% in 2011 and by 3.1% in 2012. Growth in private consumption and investments will be seen in 2011 and the following years, while public consumption will contract during 2011 and 2012.
Economic growth in 2011 and throughout the forecast period will be driven by increased investments and consumption. The trade surplus will remain high as the Icelandic króna is expected to remain weak.
Inflation and wages in the first half of 2011 are somewhat higher than previously forecast. Consequently the forecast for inflation is higher during 2011 and 2012 but will be at the Central bank's target rate after that. Unemployment will remain high but decreasing steadily with economic growth.
The last economic forecast was published on 4 April 2011. The next forecast is scheduled for November 2011.
Economic forecast, summer 2011 - Statistical Series