Economic
Central Bank Governor Forecasts Economic Slowdown in Iceland
Iceland’s Central Bank Governor forecasts an economic slowdown and cooling inflation, with weaker growth and challenges in export and mortgage sectors.
Iceland’s Central Bank Governor, Ásgeir Jónsson, has indicated that the country’s rapid economic growth is ending and the economy is entering a cooling phase. The Central Bank’s latest forecast projects markedly slower GDP growth than earlier estimates, driven by shocks in the export sector and turmoil in the domestic mortgage market following a Supreme Court decision. Inflation is expected to ease toward the Bank’s target, but conditions for households may worsen despite the rate cut to 7.25%. The outlook underscores tighter financial conditions and a subdued growth path for 2026.
- Status
- active
- Location
- Reykjavík, Iceland
- Date added
- 2026-04-11 14:27 UTC
- Added by
- bodglobalapdrt
- Last updated
- Source
- Iceland Review
- Source published dsate/time
- Not provided
- Event date/time
- 2026-04-11
- Connected threats
- Not provided