News and notifications

- Þjóðhagur/Macroeconomic

New macroeconomic forecast: Moderate growth ahead

This is the eighth edition of Þjóðhagur, the annual review of Landsbankinn Economic Research. Þjóðhagur focuses on developments and outlook in the economy. It features Economic Research's macroeconomic and inflation forecast, provides a comparison with the previous forecast and forecasts from other key analysts.

Economic conditions in Iceland have in most respects been extremely favourable in recent years. Inflation has held steady under the Central Bank's 2.5% target since February 2014 and until the middle of this year, and economic growth has been continuous since 2011. The purchasing power of wages has never been higher, unemployment levels are low and household and corporate debt is at an historic low. The National Treasury is very strong and net foreign debt has never before been as favourable.

It appears that a changing point has been reached in the economic cycle. Landsbankinn Economic Research expects economic growth to slow considerably in coming years following the robust growth period of recent years. According to the forecast, economic growth will be 3.9% in 2018, 2.4% next year and just over 2% in 2020 and 2021. Inflation has begun to make its presence felt and the inflation outlook for the forecast period is rather poorer than in recent years. We expect inflation to have reached 3.5% at the end of this year. Inflation is expected to be slightly over target on average during the forecast period yet to trend back towards target at the forecast horizon. According to the inflation forecast, inflation will average 3.3% in 2019-2021.

Economic forecast 2018-2021 - excerpt in English

News and Notifications - 15 November 2018 09:15 AM

Landsbankinn changes interest rates

Today, Landsbankinn has raised non-indexed deposit and lending rates by 0.10-0.25 percentage points and lowered variable indexed deposit and lending rates by 0.10 percentage points. Rates on domestic foreign currency accounts have also been increased.


Vikubyrjun/Weekly bulletin - 12 November 2018 10:53 AM

Icelandic Economic Weekly: Monday 12 November 2018

The MPC raised policy rates by 0.25 percentage points. Concurrent with the policy rate decision, the CBI released its quarterly Monetary Bulletin. Icelandair Group acquired WOW air. Íslandsbanki released results for the first 9 months of the year.


News and Notifications - 07 November 2018 09:12 AM

Resigns as a Member of the Board of Directors of Landsbankinn hf.

Samúel Guðmundsson has resigned from the Board of Directors of Landsbankinn. Samúel was elected as alternate to the Board of Directors in April 2016 and became a regular member in March 2018.