Iceland’s performance is strong
Iceland has become an immigration country
Growth has peaked
The labour market has started to ease but remains tight
Labour market imbalances are considerable
The gender gap in paid hours worked is the highest in the OECD
Competitiveness improved, despite wages exceeding productivity growth
Wages and wage growth are more equally distributed than productivity
External positions have improved, although foreign capital is shying away
The structure and destination of exports are evolving
Tourism has recovered fast but may soon reach its sustainable potential
Monetary policy has been tightened
Inflation has been broadening
Inflation expectations have de-anchored
Iceland’s inflation history
The financial system looks sound
Banks are well capitalised
Pension funds have expanded
The housing market has started to cool but prices remain high
Housing supply reacts slowly to rising demand
Fiscal deficits have begun to shrink
Spending tends to be procyclical
Spending quality has declined
Spending on pensions is small, but ageing costs will rise
Reform could help contain spending and stabilise debt
Taxation is around the OECD average and relies heavily on income
Marginal tax rates are high
Labour productivity has been rising by around 1% per year
The business climate is rather unfriendly
The insolvency framework is ineffective
Financial support to innovative firms is high
Corruption is perceived as average in Iceland
Iceland is addressing climate change