Strong ongoing economic recovery from pandemic fallout, alongside continued fiscal consolidation over the next few years, will improve Iceland's public finances beyond our previous expectations. We expect high domestic demand and the ongoing recovery of tourism will result in real GDP growth of 3.3% this year and an average of 2.4% in 2024-2026. Iceland has effectively managed external pressures, and the country's extensive energy independence has shielded the country from the fallout of the Russia-Ukraine conflict. We therefore revised our outlook on Iceland to positive from stable and affirmed our 'A/A-1' sovereign credit ratings. On May 12, 2023, S&P Global Ratings revised its outlook on Iceland to positive from stable. We affirmed the long- and short-term foreign and local currency
