Cookies

By clicking "Allow All", you agree to the use of cookies to enhance website functionality, analyse website usage and assist with marketing.

More on cookies

Eco­nom­ic fore­cast to 2027: The eco­nomy catches its breath

Hagspá Landsbankans
15 October 2024

Landsbankinn Economic Research forecasts a near status quo in the economy between years and a 0.1% contraction in GDP in 2024.

This is a considerable change from previous years, when annual economic growth has measured 5-9%, though accompanied by high and persistent inflation. This forecast anticipates a different and calmer tempo. There is more slack in the economy that allows for breathing space - inflation recedes considerably, interest rates decrease and the economy gets off to a nice and easy start with 2% annual growth in the coming years. 

These are among the highlights of the economic forecast of Landsbankinn Economic Research, looking forward to year-end 2027. Economic Research presents its forecast in Harpa, at 8:30-10:00 on Tuesday, 15 October. The event is also streamed live on the Bank’s website.

Una Jónsdóttir, Head of Landsbankinn Economic Research:

“The forecast is mostly fair despite the outlook for a slight contraction this year. The domestic economy is going through a timely and necessary cooling phase, an adjustment that may nonetheless be painful for many. The real interest rate remains high and may yet rise. This means that restraint may tighten, putting pressure on domestic households and companies. But the rate-cutting cycle has begun, and we think that a win in the battle against inflation is within sight. It could take time to pressure inflation down to target and we do not necessarily expect that to happen this side of the forecast horizon, despite a handsome reduction in inflation.”

You may also be interested in
27 Feb. 2026
Three nominations for Landsbankinn’s Euro Cup campaign
Landsbankinn has received three nominations for Lúðurinn, the Icelandic Ad Awards, for 2025. Lúðurinn is hosted by ÍMARK, the Association of Icelandic Marketing Professionals, in collaboration with the Society of Icelandic Advertising Agencies. This is the 40th time the Lúðurinn awards are presented in Iceland.
Stúlka með síma
27 Feb. 2026
ISK 10 million in scholarships
Applications for Landsbankinn scholarships are now open. The Bank has supported promising students with financial grants for 36 years. This year it was decided to raise the total amount of scholarships granted by ISK 2 million, bringing the total amount of scholarships to be awarded this year to ISK 10 million.
26 Feb. 2026
Landsbankinn sponsors Reykjavík Arts Festival
Landsbankinn and Reykjavík Arts Festival have signed a sponsorship agreement for the years leading up to and including 2028. Sara Pálsdóttir, Managing Director of Communication & Culture at Landsbankinn, and Lára Sóley Jóhannsdóttir, Artistic Director of the Festival, signed the agreement.
18 Feb. 2026
Kristín Gunnarsdóttir heads new Media & Research Department
Kristín Gunnarsdóttir has been appointed Head of Media & Research, a new department within Landsbankinn’s Communications & Culture Division that will commence operations at the end of February. The department will encompass the Bank’s PR team and its Economic Research Department. Una Jónsdóttir, Chief Economist of Landsbankinn, will continue to lead the Economic Research team within the new department.
Svanni
18 Feb. 2026
Deadline to apply for loan guarantee from Svanni
Landsbankinn has renewed its partnership agreement with Svanni - the Women's Loan Guarantee Fund, for the next four years. The renewed agreement is valid throughout September 2029.
Austurbakki
5 Feb. 2026
Landsbankinn Corporate Finance advisor in Styrkás’ acquisition of Gallon
Styrkás hf., through its subsidiary Skeljungur ehf., has signed a purchase agreement providing for the acquisition of all share capital in Gallon ehf. The seller is Skel fjárfestingafélag hf.
Netsvik
29 Jan. 2026
Phishing emails in Landsbankinn’s name
Landsbankinn wishes to warn about fraudulent emails currently in circulation, spoofing the Bank’s name and image. The content of the emails is a false notification claiming that the recipient must click a link in the email to confirm a transfer.
Netbanki fyrirtækja
16 Jan. 2026
Changed amounts in Central Bank’s interbank system
The Central Bank of Iceland has decided to change the maximum amount limit in its interbank system.
14 Jan. 2026
TM new Aukakrónur partner
We are happy to announce that TM has joined our Aukakrónur partnership. Everyone who is insured with TM gets a 1% refund in the form of Aukakrónur when paying with a card linked to the Aukakrónur system. You can also use your Aukakrónur to pay for insurance.
7 Jan. 2026
Landsbankinn partners with the Drift EA
Landsbankinn and Drift EA have entered into a partnership agreement aimed at supporting innovation and entrepreneurship in Iceland by strengthening the framework, advisory services and networks available to entrepreneurs and startups.