The Economist Intelligence Unit expects the government, comprising the Social Democratic Alliance (SDA) and the Left-Green Movement, to survive during the forecast period, despite major differences between the parties. We do not expect EU negotiations to lead to membership. The government will introduce both expenditure cuts and tax increases to bring down the budget deficit in line with IMF requirements. Following a decline of 6.3% in 2009, we expect little change to GDP in 2010 and growth of 1.8% in 2011. |
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| Key Reports Available for Iceland |
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| Total land area | | Iceland's total surface area is 103,000 sq km, but only 21,000 sq km can be used for agriculture. Glaciers, lava fields and lakes comprise 26% of the total area, 54% is barren land and most of the remaining 20% is used for grazing | | Population | | 313,376 (January 1st 2008) | | Main towns | | (January 1st 2008) | | Reykjavik (capital): 116,992 | | Kopavogur: 28,665 | | Hafnarfjordur: 24,895 | | Akureyri: 17,097 | | Reykjanesbaer: 13,134 | | Climate | | Cool temperate oceanic; highly changeable, influenced by the warm Gulf stream and Arctic currents | | Weather in Reykjavik (altitude 18 metres) | | Hottest month, July, 10.6°C; coldest month, January, –0.5°C; driest month, May, 44 mm (average monthly rainfall); wettest month, October, 86 mm | | Language | | Icelandic, belongs to the Nordic group of Germanic languages, descended from Old Norse | | Weights and measures | | Metric system | | Currency | | 1 krona (Ikr)=100 aurar | | Average exchange rates in 2007: Ikr64.1:US$1; Ikr87.7:€1 | | Exchange rates on July 24th 2008: Ikr80.4:US$1; Ikr126.0:€1 | | Fiscal year | | Calendar year | | Time | | GMT, all year | | Public holidays | | January 1st; March 20th, 21st and 24th; April 26th; May 1st and 12th; June 17th (independence day); August 4th; December 25th and 26th | | SOURCE: Country Profile |
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