REYKJAVIK: Iceland’s economy was predicted to grow by 4.3 percent in 2015, according to latest economic forecast released Friday by Statistics Iceland.
The statistics further showed Iceland’s economy is predicted to grow by 4.3 percent in 2015, 3.5 percent in 2016, and 2.5 to 2.8 percent from 2017 to 2019.
Private consumption growth was expected to be 4.4 percent in 2015, 4.7 percent in 2016, 4.2 percent in 2017 and close to 3 percent between 2018 and 2019. Estimated growth for public consumption is 1.5 percent in 2015, and between 1.1 to 1.5 percent over the period 2016 to 2019.
Trade surplus will decrease moderately as imports are expected to grow more rapidly than exports due to strong consumption and investment.
Inflation which looks to be 1.7 percent in 2015 is expected to increase to 3.2 percent in 2016 and 3,7 percent in 2017, but decreases after that.
Wage increases, low to moderate inflation, planned cuts in tariffs and taxes result in a large increase in disposable income and purchasing power during 2015 and 2016.
