 The financial crisis had a serious negative impact on the Icelandic economy. The national currency fell sharply in value, foreign currency transactions were virtually suspended for weeks, and the market capitalisation of the Icelandic stock exchange fell by more than 90 %. As a result of the crisis, Iceland underwent a severe economic depression; the country's gross domestic product dropped by 10 % in real terms between the third quarter of 2007 and the third quarter of 2010. A new era with positive GDP growth started in 2011, and has helped foster a gradually declining trend for the unemployment rate. The government budget deficit has declined from 9.7 % of GDP in 2009 and 2010 to 0.2 % of GDP in 2014; the central government gross debt-to-GDP ratio is expected to decline to less than 60 % in 2018 from a maximum of 85 % in 2011.
