IMF Warns Iceland on Economy Skip to content

IMF Warns Iceland on Economy

The International Monetary Fund (IMF) has warned Iceland on its economy, stating that “legacy vulnerabilities are creating headwinds” for continued expansion.

centralbank_ipaIceland’s Central Bank. Photo copyright Icelandic Photo Agency.

According to the IMF’s latest report on Iceland’s progress, the Icelandic authorities “decisive and comprehensive response to the 2008-2009 crisis has put the Icelandic economy on a path to recovery.”

The report also states that slow progress in removing capital controls is undermining confidence and is proving a barrier for investors.

Iceland completed a 33-month IMF-led rescue program in 2011 after its 2008 financial collapse. The IMF concluded at the time that Iceland had met the objectives and reached economic stability.

The IMF forecasts that Iceland will post a deficit of 2.7 percent this year and 1.8 percent next year and that the economy will grow 1.9 percent this year and 2.1 percent in 2014, bloomberg.com reports.

Read the full IMF report here.

ZR

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