New figures released by the OECD predict 2.2 percent economic growth for Iceland this year and 2.9 percent next year.

The previous OECD projection from November speculated that the Icelandic economy would grow by just 1.5 percent in 2011 and 2.6 percent in 2012; which is less optimistic than the newest report.

According to the latest report, better economic growth is being driven by investment in energy intensive industry, and by an upswing in consumer demand.