Iceland's economy forecast to grow by 4.3 pct in 2017

Iceland's gross domestic product (GDP) is estimated to have grown by 5.9 percent in 2016 and is forecast to grow by 4.3 percent in 2017, Iceland's statistics agency said on Friday.

The Nordic island country's GDP is forecast to grow by between 2.5 percent and 3.0 percent per year from 2018 to 2022, Statistics Iceland said in its latest economic forecast report for 2016 to 2022.

Private consumption is estimated to have grown by 7 percent in 2016 and is forecast to grow by 5.9 percent in 2017, 3.9 percent in 2018 and between 2.5 percent and 2.9 percent a year for the remainder of the forecast horizon.

Public consumption growth will be close to 1.5 percent yearly throughout the forecast period, the statistics agency said.

Investment in 2016 is estimated to have grown by 22.7 percent and is expected to increase by 12.6 percent in 2017, but somewhat less during 2018 to 2022. Public investment is forecast to increase considerably in 2017 and 2018. Endit