Forecast indicates Icelandic economic growth

iceland-flagThe latest statistics from Iceland’s data analysts indicate the national economy should experience healthy growth over the next five years. Figures released late last week by official bellwether Statistics Iceland show the economy will have grown by two per cent this year.

For the same period through to the New Year, the figures show an expansion of 1.6 per cent in private consumption. This will be evened out by a contraction of 3.1 per cent in investment.

Statistics Iceland’s forecasts for 2014 show the upward trend is set to continue with the economy witnessing growth of  2.5 per cent. The bureau’s winter report shows investment growth of a whopping 10.6 per cent for the coming year while private consumption will expand by 2.5 per cent.

Looking at archival statistics the bureau said relatively strong economic growth in the first months of last year tapered off towards the end of the period. More jobs this year has provided the Icelandic workforce with additional disposable income, yet this has not spurred people to spend and private consumption is only on a gradual upward arc.

Wage discussions are currently in progress in some industries. The bureau says this may impact on the projected inflation figure of 3.8 per cent for 2013. This figure is marginally higher than predicted in the last forecast issued on 28 June.

Statistics Iceland is an independent body which collects and analyses report data on the economy as well as in areas such as social trends. The agency is due to publish its next economic forecast next April.