Solid economic fundamentals and the authorities‘ swift policy response appropriately supports the economy in the wake of shocks according to a newly released Article IV report on Iceland by the IMF.
An IMF Mission was in Iceland in November to consult with the Icelandic authorities and other stakeholders.
According to the report, solid economic fundamentals and the authorities‘ swift policy response, with both fiscal relaxation and monetary easing, have cushioned the effects of economic shocks. Furthermore, Iceland‘s fiscal framework, fiscal surpluses and a rapid decline in public debt has created fiscal space to provide further support if needed, according to the IMF.
Links to IMF‘s reports:
- IMF‘s Article IV Consultation
- Selected Issues Paper on the Scope for Improving Iceland‘s Fiscal Framework