Economic update in March 2021
The Iceland Chamber of Commerce (ICoC) has published a status update on the Icelandic Economy for its members. It is based on a presentation for ICoC’s members presented in February.
The presentation focuses on the recovery of the Icelandic economy post Covid-19. Through that lens we provide insights into what is known to be known and what is known to be unknown regarding the outlook of the economy. To provide the former, we include an overview of how the economy performed in 2020 and which factors were the main drivers of that performance. Regarding the latter, we scrutinize the latest economic forecasts and discuss the possible implications for unemployment, inflation, and the exchange rate. Consequently, we list developments that are most likely to determine the near-term economic prospect.