Our comprehensive assessment of Iceland's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Iceland, as well as the latest industry developments that could impact Iceland's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Iceland before your competitors.
Iceland Country Risk
The debt relief plan, passed through parliament in late May 2014, will provide a short-term boost to consumption, at the expense of deteriorating external surpluses and reduced ability to meet external debt obligations.
The government's persistent inaction is undermining Iceland's short-term political stability, reflected in the downgrade to our proprietary political risk ratings this quarter.
We see no clear proposal for removal of restrictive capital controls, which will continue to hamper foreign investment into Iceland, capping long-term growth potential.
Major Forecast Changes
We have revised up our 2015 real GDP growth forecast this quarter, to 3.0% from 2.5% previously, as we believe the government's debt relief programme will...