Iceland’s economy rebounded in the third quarter of 2013, revealed figures from the country’s statistics agency. The North Atlantic nation’s gross domestic product increased by 6.1 per cent in comparison with the output in the second quarter when it shrank by 6.6 per cent.
The country’s economy was boosted by exports which grew by 11.8 per cent, the biggest jump since 2008. Meanwhile, imports fell by 0.8 per cent and investment by 8.9 per cent.
The latest figures hint at a strong recovery, but Statistics Iceland has cautioned that it is difficult to compare the data from different quarters. The statistics agency said the abnormally large changes in fisheries’ inventories between the first two quarters from 2011-2013 mean the seasonal adjustment between quarters is less secure.
Public expenditure in the next few years is expected to increase as new investors inject funds into the energy sector.
For 2014, the Central Bank of Iceland has forecast a 2.6 per cent increase although there is also the risk of inflation, with the rate in November way above the bank’s 2.5 per cent target at 3.7 per cent.
Overall GDP growth is forecast at being between 2.5 and three per cent over the next few years but is unlikely to return to pre-crisis levels before 2015, according to Capital Economics analyst James Howat.