Iceland Trade Deficit Narrows Sharply in February

Iceland’s trade deficit narrowed sharply to ISK 9.9 billion in February 2026 from ISK 59.5 billion in the same month a year earlier. Exports rose 2% year-on-year to ISK 78 billion, driven by increased shipments of marine products (13.1%) and agricultural products (3.3%). Meanwhile, imports fell 35.2% to ISK 88 billion, weighed down by declines in capital goods excluding transport (-65.6%), transport equipment (-30.6%), and fuels and lubricants (-26.9%).

Iceland’s trade deficit narrowed sharply to ISK 0.3 billion in January 2026 from ISK 7.8 billion in the corresponding month of the previous year. This marked the smallest trade deficit since a surplus recorded in January 2019, as exports fell less than imports. Exports declined by 20.9% year-on-year to ISK 72.4 billion, weighed down by lower shipments of manufactured goods (-36.6%) and other products (-49%). Imports also fell by 26.8% to ISK 72.7 billion, driven by a notable drop in purchases of industrial supplies (-35.8%), fuels and lubricants (-41.2%), capital goods (-35.2%), and transport equipment (-23.5%).

Iceland’s trade deficit narrowed to ISK 40.8 billion in December 2025 from ISK 45.9 billion in the corresponding month of the previous year, as both exports and imports contracted. Exports fell 12.3% year-on-year to ISK 74.2 billion, weighed down by lower shipments of manufactured goods (-25.1%) and other products (-55%). Imports also declined 11.9% to ISK 115.0 billion, driven by sharp drops in food and beverages (-11.2%), industrial supplies (-27.0%), and capital goods (-55.3%).