The ratings on the Republic of Iceland are supported by: Stable and flexible political institutions, enjoying broad public backing and a long tradition of stable coalition governments. A wealthy and flexible economy with one of the highest per capita GDPs in the world. The flexibility of Iceland's economy was highlighted by its swift reaction to the imbalances that had mounted during the credit-fuelled boom of 1996-2000. Credit growth slowed to virtually zero in 2002 from 44% in 2000, and the current account almost returned to balance, at a deficit of 0.1% of GDP from a deficit of 10.1% over the same period, without major economic repercussions. Economic growth turned only slightly negative in 2002 (0.5% contraction), and is forecast to
