Positive Economy Forecast

Landsbankinn has released a new economic forecast for 2008 where they predic a new era of economic growth, mainly due to continuing construction in heavy industry. The bank believes that economic growth between this year and the next will be five percent, and that inflation will rapidly go down due to heightened currency value and a cooling off on the estate market.

However, the bank does not predict prices of real estate to go any further down in the next year. Landsbankinn also predicts that the krona will go from strenght to strength in coming years.