Macro - Country Economic Forecasts - Iceland
We forecast Iceland's economy will expand by 0.6% this year before picking up to 1.4% in 2025 thanks to easing inflation and to the impact of monetary tightening being absorbed. Short-term growth prospects have worsened due to a data revision. We expect more stubborn inflation, averaging 5.6% in 2024 and 3.4% in 2025, due to stronger-than-anticipated momentum.
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