Iceland: 2026 Article IV Consultation-Press Release; and Staff Report

International Monetary Fund

No 2026/208, IMF Staff Country Reports from International Monetary Fund

Abstract: Tight macroeconomic policies have helped slow domestic demand, but wage growth and inflation remain elevated, raising concerns about a de-anchoring of inflation expectations and erosion of export competitiveness. The priorities now are to return inflation to target, strengthen fiscal resilience, and advance productivity‑enhancing reforms to support sustained gains in living standards and enhance resilience to shocks.

Pages: 90
Date: 2026-07-30
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