is the rough behind us macroeconomic insight august 25 2006 it seems that icelandic economy cooling down depreciation of currency isk earlier this year tilted into adjustment mode which gradually changing economic scene markets are taking as a positive sign björn rúnar gudmunds on s bjorn r gudmundsson landsbanki 354 410 7382 issues and bond market lúdvík elíasson 7386 ludvik eliasson icelandi c research our view current account deficit still high despite slower growth in domestic demand remains stubbornly large only 2007 things will start to brighten up front with falling around 10 gdp subsiding inflation likelihood remaining obstinately at 8 for next 12 months relatively small recent increases wages collective wage agreement was renewed ongoing slowdown key sectors such construction most likely prevent major drift moreover housing house prices component cpi no longer fuel
