The Icelandic Tourist Board published its monthly tourism in figures report. Íslandsbanki issued a SEK-denominated bond.

In real terms, the economy grew by 1.7% YOY in Q1. Domestic demand decreased by 2.8%, exports increased by 2.6% and imports decreased by 8.1.

The Republic of Iceland issued a new Eurobond. The Government Debt Management Agency published its monthly Market Information report. Registered unemployment was 3.6% in May.

Number of foreign tourists fell by 23,6% in May YoY. Preliminary figures for trade account in May show 16,4 B.ISK deficit. The minutes of monetary policy committee meeting shows that all committee members voted in favour of lowering policy rate by 0.5 percentage points in May.

After a period of continuous economic growth since 2011, a turning point has been reached in the economic cycle. Following shocks in the fishing and tourism sectors, the outlook is for economic contraction this year. This contraction will be slight and short-lived.