Gross domestic product gained 0.5 percent from the previous quarter, after rising 4.8 percent in three months through September, Reykjavik-based Statistics Iceland said in a statement on its website today. Output expanded 1.4 percent from a year earlier and 1.6 percent overall in 2012, the office said.
Iceland is emerging from its 2008 banking meltdown and economic collapse even as Europe struggles to contain a debt crisis in its fourth year. The island’s central bank in December halted a cycle of interest rate increases to protect the economy from the fallout of the euro-area crisis.
Exports fell 0.1 percent from the previous quarter, while household spending increased 1.5 percent, recovering from a 0.5 percent decline in the third quarter, the agency said. Gross fixed capital formation rose a quarterly 4.3 percent.
The central bank said in February that “as spare capacity disappears from the economy, it is necessary that monetary policy slack should disappear as well.”
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