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Iceland: Recent Economic Developments
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 1997: Issue 015
Language:
English
Publication Date:
08 Apr 1997
DOI:
https://doi.org/10.5089/9781451819205.002
ISBN:
9781451819205
ISSN:
1934-7685
Pages:
139
Keywords:
ISCR; CR; demand; market; investment goods; consumer price inflation; HP filter; current account sustainability; asset price development; saving rate; tax system; saving-investment imbalance; Current account; Output gap; Personal income tax; Current account imbalances; Europe; Global
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This paper reviews economic developments in Iceland during 1990–96. It analyzes the origins of the current economic expansion associated with a swing in the current account and in emerging inflation pressure. Three driving forces are emphasized: the positive supply shock affecting the fisheries; the expansion of the power intensive industry; and brisk increases in real wages over the past two years (1995–96). The paper highlights that the main sources of upside risks comprise the likely construction of a new aluminum smelter.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund