The economy of Iceland shrank 1.2 percent year-on-year in the first three months of 2020, the worst contraction since 2010, mainly due to a decline in tourism after several countries imposed coronavirus lockdown restrictions. External trade contributed negatively, as exports of goods and services plunged 17.2 percent and imports 9.7 percent. On the other hand, private spending rose 0.9 percent and public expenditure went up 2.3 percent. Gross fixed capital formation increased 4.1 percent, largely due to base effect, as a considerable decrease was measured in business sector investment in Q1 2019, when sale and export of aircraft took place following a bankruptcy of Icelandic airlines. On a quarterly basis, the economy plunged 7 percent, the biggest contraction since the first quarter of 2009.
GDP Annual Growth Rate in Iceland averaged 3.50 percent from 1995 until 2020, reaching an all time high of 13.40 percent in the first quarter of 1999 and a record low of -8.70 percent in the fourth quarter of 2009. This page provides - Iceland GDP Annual Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Iceland GDP Annual Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2020.
GDP Annual Growth Rate in Iceland is expected to be -6.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Iceland to stand at 8.80 in 12 months time. In the long-term, the Iceland GDP Annual Growth Rate is projected to trend around 1.50 percent in 2021 and 2.60 percent in 2022, according to our econometric models.