Volcanic eruptions between November 2023 and March 2024 forced around 3,700 residents to evacuate the southwestern town of Grindavík, located close to Iceland's main international airport. Seismic activity has since calmed and the airport remains fully operational. After a strong 4.1% in 2023, we expect real GDP growth will ease to 2.3% in 2024 and average 2.4% in 2025-2027, and we forecast Iceland's net general government debt will steadily reduce to 41% of GDP by 2027 in line with the government's commitment to fiscal consolidation. We affirmed our 'A+/A-1' sovereign credit ratings on Iceland and maintained a stable outlook. On May 10, 2024, S&P Global Ratings affirmed its 'A+/A-1' long- and short-term foreign and local currency sovereign credit ratings on
