Iceland : 2021 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Iceland.

The Icelandic economy has been severely affected by the pandemic. Sharp tourism contraction and containment measures caused real GDP to plummet by 6.6 percent in 2020. A modest recovery will take hold in 2021. Recovery prospects in the tourism sector depend on control of the epidemic and progress in...

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Detalles Bibliográficos
Autor Corporativo: International Monetary Fund. European Dept
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2021.
Colección:IMF Staff Country Reports; Country Report ; No. 2021/106
Materias:
Acceso en línea:Full text available on IMF
Descripción
Sumario:The Icelandic economy has been severely affected by the pandemic. Sharp tourism contraction and containment measures caused real GDP to plummet by 6.6 percent in 2020. A modest recovery will take hold in 2021. Recovery prospects in the tourism sector depend on control of the epidemic and progress in global and domestic vaccine distribution, spelling a challenging outlook with possibly deep medium-term scarring. Fiscal policy should continue to support the economy for now. Policy buffers accumulated over the last decade provided space for a large fiscal support and accommodated substantial automatic stabilizers. Additional stimulus is planned in 2021 to address still large slack in the economy, mitigate scarring, and provide confidence in the event of downside risks. Medium-term policies should ensure that public debt is firmly on a downward path, while limiting the drag on growth.
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Descripción Física:1 online resource (77 pages)
Formato:Mode of access: Internet
ISSN:1934-7685
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