Iceland’s Economy Cools, but Experts Cautious on Recession

Iceland’s economy experienced a contraction in the second quarter of 2024, marking the second consecutive quarter of negative growth. While some experts are hesitant to label this a recession, there are clear signs of a cooling economy. Gylfi Magnússon, a professor of economics at the University of Iceland, cautions against prematurely declaring a recession, highlighting that the figures are preliminary and subject to revision. He emphasizes the need for more conclusive data, including rising unemployment, financial instability, and bad debt, before declaring a recession.