Iceland; Selected Issues Paper
In this study, during 2008, the financial crisis lead Iceland’s public debt to soar from under 30 percent of GDP to more than 100 percent of GDP, and while underlying external debt came down sharply, it remains elevated at close to 300 percent of GDP. First, external sustainability is overviewed, and second, growth of Iceland’s economy has been challenged, and finally, fiscal adjustments and its macroeconomic impacts are overviewed. Traditional external debt sustainability analysis (DSA) suggests that Iceland’s external debt is sustainable but is vulnerable to depreciation shock.
Year of publication: |
2010-10-04
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Institutions: | International Monetary Fund (IMF) ; International Monetary Fund |
Subject: | Corporate sector | Debt sustainability | Economic growth | Economic models | External debt | External sector | Financial risk | Fiscal consolidation | Selected issues | Sovereign debt | public debt | debt reduction | debt dynamics | external debt sustainability | fiscal adjustment | fiscal position | fiscal policy | fiscal model | current account | current account surplus | evolution of debt |
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