Iceland Trade Gap Widens to 4-Month High

Iceland’s trade deficit widened to ISK 63.1 billion in August 2026 from ISK 33.6 billion in the same month a year earlier, marking the largest deficit in four months. Imports surged by 35% year-on-year to ISK 135.5 billion, driven largely by increased purchases of fuels and lubricants (+74%), transport equipment (+63%), industrial supplies (+31%), consumer goods (+7%), and food and beverages (+5%). Meanwhile, exports rose by 8% to ISK 72.4 billion, lifted by higher shipments of farmed fish (+52%), manufactured products (+33%), which offset declines in agricultural products (-53%), marine products (-14%), and other products (-75%). Over the last twelve months, Iceland’s trade deficit totaled ISK 470.0 billion, moderating from ISK 501.6 billion a year earlier. Exports recorded no growth at ISK 954.8 billion, while imports dropped by 2% to ISK 1,424.8 billion.

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.