Landsbanki, The National Bank of Iceland, forecasts a new period of economic growth from 2008 to 2010 due to continued heavy industry operations. This follows a short period of adaptation that began early this year. This is reported in Fréttabladid today.
The upswing in the economy is currently said to be reaching full maturity, as the real estate market has cooled, imports of new cars have dropped and credit card turnover has slowed. A rapid decline in private consumption, investments and imports is expected next year, but the value of exports will serve to offset this trend meaning that domestic production will not decrease. Economic growth of 1.3 percent is expected next year, followed by growth of 5 percent on the average in the subsequent growth period.
