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New macroeconomic research: Growth period over for now - policy rate cuts on the horizon

After a period of continuous economic growth since 2011, a turning point has been reached in the economic cycle. Following shocks in the fishing and tourism sectors, the outlook is for economic contraction this year. This contraction will be slight and short-lived.

Despite above trend growth in the past several years, the economy is much better balanced and more robust than at the end of previous expansion periods in Iceland.

A combination of relatively high policy rates and strong Treasury position enable firm application of policy instruments to soften the impact of contraction and lay the groundwork for sustainable development as early as next year.

Read the economic forecast for 2019-2021

Weekly bulletin - 02 June 2020 10:03 AM

Icelandic Economic Weekly: Tuesday 2 June 2020

The Icelandic economy contracted by 1.2% year-on-year in Q1. The CPI based on prices in May increased by 0.54% MoM, bringing the headline number to 2.6%. The trade balance and the current account balance were both slightly positive in Q1. The Treasury issued bonds in euros.


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Forsíða - 28 May 2020 04:41 PM

Landsbankinn lowers interest rates

Landsbankinn has recently established itself as the financial undertaking that offers the most competitive lending rates in Iceland. Since the Central Bank of Iceland embarked on the current rate-cutting programme, Landsbankinn has generally lowered lending rates more than deposit rates.


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Forsíða - 27 May 2020 12:10 PM

Bolungarvík outlet merges into Ísafjörður branch

Landsbankinn’s outlet in Bolungarvík will merge into the Ísafjörður branch on 1 July.


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