Iceland 2021 Article Iv Consultation Press Release Staff Report Staff Statement And Statement By The Executive Director For Iceland

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

Iceland: 2021 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Iceland
Author :
Publisher : International Monetary Fund
Total Pages : 77
Release :
ISBN-10 : 9781513573144
ISBN-13 : 1513573144
Rating : 4/5 (144 Downloads)

Book Synopsis Iceland: 2021 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Iceland by : International Monetary

Download or read book Iceland: 2021 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Iceland written by International Monetary and published by International Monetary Fund. This book was released on 2021-06-08 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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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