Iceland Trade Deficit Narrows to 4-Month Low

Iceland posted a trade deficit of ISK 40.6 billion in July 2026, narrowing from ISK 44 billion in the corresponding month of the previous year and marking the lowest deficit since March. Exports rose 19% year-on-year to ISK 86.5 billion, lifted by higher shipments of farmed fish (+62%), manufacturing products (+34%), and agricultural products (+1%), which offset declines in marine products (-5%) and other products (-8%). Meanwhile, imports grew by 9% to ISK 127.1 billion, driven largely by higher purchases of capital goods (+29%), food and beverages (+13%), and industrial supplies (+3%), while imports of fuels and lubricants (-1%), transport equipment (-7%), and consumer goods (-1%) declined. Over the last twelve months, Iceland’s trade deficit totaled ISK 441.9 billion, moderating from ISK 504.8 billion a year earlier. Exports were flat at ISK 949.5 billion, while imports fell by 5% to ISK 1,391.4 billion.

Iceland posted a trade deficit of ISK 57.4 billion in June 2026, widening from ISK 39.8 billion in the same month of the previous year. Exports climbed 42% year-on-year to an over three-year high of ISK 98.0 billion, supported by higher shipments of manufacturing products (59.4%), marine products (25.5%), and farmed fish (36.9%). Meanwhile, imports rose at a slightly faster pace, advancing 43% to a record high of ISK 155.3 billion, driven by increased purchases of capital goods (164.8%), industrial supplies n.e.s. (12.1%), fuels and lubricants (47.9%), and consumer goods n.e.s. (7.0%). Over the last twelve months, Iceland's trade deficit totaled ISK 443.9 billion. Exports declined 3%, largely reflecting an 11% drop in manufacturing goods, which accounted for 49% of total exports, while imports fell 9%, mainly due to lower purchases of industrial supplies, investment goods, fuels and lubricants, and transport equipment.

Iceland’s trade deficit narrowed to ISK 56.6 billion in May 2026 from a revised ISK 63.1 billion in the corresponding month a year earlier. Exports fell 11% year-on-year to ISK 71 billion, primarily due to lower shipments of agricultural products (-36.3%), manufacturing goods (-17.0%), and pharmaceutical products (-35.1%). Meanwhile, imports also declined 11% to ISK 127.6 billion, driven by reduced purchases of capital goods (-28.5%), transport equipment (-6.6%), and fuels and lubricants other than petroleum products (-41.3%). In contrast, imports of food and beverages increased by 33.1%. Over the last twelve months, Iceland’s trade deficit totaled ISK 426 billion. Exports decreased 6%, largely reflecting a 15% decline in manufacturing goods, which accounted for 48% of total exports, while imports fell 9%, mainly due to lower purchases of capital goods and industrial supplies.