The International Monetary Fund’s (IMF) review of Iceland concludes that the country’s economic situation is much better off than it had been anticipated it would be shortly after the banking collapse of October 2008.
The national debt is much smaller than expected, and it is expected that this debt will continue to decrease if a more viable deal on Icesave is worked out with the British and Dutch.
The report still emphasizes that it is important for the government to act on the size of personal debt, which is now 300% of the GDP. The recommend measures be taken to help relieve this debt.
On the other hand, the IMF believes the government has done a good job in lowering inflation significantly. It is their prediction that unemployment will decrease from 9.7% now to 8.6% the following year, and be down to 3% in 2014.
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