Following a period of substantial growth the Icelandic economy will now adjust to new economic conditions. Fortunately the pillars of the economy are strong and the the standard of living among a vast majority of Icelanders should continue to be among the best worldwide.
The outlook is for Iceland's GDP to have grown by 0.3% in 2019. A sharp decline in industry investment and service exports is offset by increased consumption and considerably less import.
During 2020 we expect quite slow GDP growth, 1.4%, driven by moderate growth of domestic demand. We forecast more growth in 2021 (2.3%) and 2022 (2.4%) as private consumption and exports increase.