Iceland’s economy expanded 2.7% year-on-year in the first quarter of 2026, rebounding from a 0.6% contraction in the previous quarter. Net trade contributed positively to GDP, with exports rising 1% after a 5% decline, as services growth accelerated (6.9% vs 4.3%) and goods exports declined at a slower pace (-3.9% vs -13.3%). Meanwhile, imports fell further by 8% following a 4.2% decline. At the same time, gross capital formation contracted less sharply (-12% vs -12.5%), while changes in inventories rose 1.1% after stagnating in Q4 2025. In contrast, government spending growth eased to 0.8% from 1.1%, while consumer spending slowed to 2.2% from 5.5%. On a seasonally adjusted quarterly basis, GDP jumped 3.7%, recovering from a 0.8% contraction in the preceding period. source: Statistics Iceland

The Gross Domestic Product (GDP) in Iceland expanded 2.70 percent in the first quarter of 2026 over the same quarter of the previous year. GDP Annual Growth Rate in Iceland averaged 3.08 percent from 1995 until 2026, reaching an all time high of 13.10 percent in the first quarter of 1999 and a record low of -11.10 percent in the second quarter of 2020. 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 June of 2026.

The Gross Domestic Product (GDP) in Iceland expanded 2.70 percent in the first quarter of 2026 over the same quarter of the previous year. GDP Annual Growth Rate in Iceland is expected to be 1.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland GDP Annual Growth Rate is projected to trend around 2.50 percent in 2027 and 2.30 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-02-27 09:00 AM
GDP Growth Rate YoY
Q4 -0.6% 3.2% 1.0%
2026-05-29 09:00 AM
GDP Growth Rate YoY
Q1 2.7% -0.6% 1.5%
2026-08-31 09:00 AM
GDP Growth Rate YoY
Q2 2.7% 1.9%


Related Last Previous Unit Reference
Full Year GDP Growth 1.30 -1.30 percent Dec 2025
GDP Growth Rate YoY 2.70 -0.60 percent Mar 2026
GDP Constant Prices 895063.00 892259.00 ISK Million Mar 2026
GDP Growth Rate 3.70 -0.80 percent Mar 2026
Gross Fixed Capital Formation 212215.00 221177.00 ISK Million Mar 2026
Gross National Product 3661794.00 3539686.00 ISK Million Dec 2025


Iceland GDP Annual Growth Rate
Iceland's economy depends heavily on the fishing industry, which provides 40 percent of export earnings, more than 12 percent of GDP, and employs nearly 5 percent of the work force. Its economy has been diversifying into manufacturing and service industries in the last decade, particularly within the fields of software production, biotechnology, and tourism. On the expenditure side, household consumption is the main component of GDP and accounts for 53 percent of its total use, followed by government expenditure (24 percent) and gross fixed capital formation (17 percent). Exports of goods and services account for 54 percent of GDP while imports account for 47 percent, adding 7 percent of total GDP.
Actual Previous Highest Lowest Dates Unit Frequency
2.70 -0.60 13.10 -11.10 1995 - 2026 percent Quarterly
NSA

News Stream
Iceland Economy Returns to Growth in Q1
Iceland’s economy expanded 2.7% year-on-year in the first quarter of 2026, rebounding from a 0.6% contraction in the previous quarter. Net trade contributed positively to GDP, with exports rising 1% after a 5% decline, as services growth accelerated (6.9% vs 4.3%) and goods exports declined at a slower pace (-3.9% vs -13.3%). Meanwhile, imports fell further by 8% following a 4.2% decline. At the same time, gross capital formation contracted less sharply (-12% vs -12.5%), while changes in inventories rose 1.1% after stagnating in Q4 2025. In contrast, government spending growth eased to 0.8% from 1.1%, while consumer spending slowed to 2.2% from 5.5%. On a seasonally adjusted quarterly basis, GDP jumped 3.7%, recovering from a 0.8% contraction in the preceding period.
2026-05-29
Iceland Economy Shrinks 0.6% in Q4
Iceland’s economy fell by 0.6% year-on-year in Q4 2025, following an upwardly revised 3.2% expansion in the previous quarter. Gross fixed capital formation contracted sharply to -12.5% from 5.7%, weighed down by business sector investment (-15.3% vs 16.4%) and residential construction (-15.6% vs -10.3%). At the same time, changes in inventories recorded a flat reading, compared with 1.8% in Q3.. Net trade also contributed negatively to GDP, with exports declining 5% as services dropped 4.3% from 7.2%, and goods fell 13.3% from 3.8%. On the upside, consumer spending rose 5.5% from 4.7%, while government spending edged up 1.1% from 1%. On a seasonally adjusted quarterly basis, the GDP shrank 0.8%, following an upwardly revised 1.3% growth in the preceding period. For the full year, Iceland’s economy expanded 1.3%, compared with a 1.3% contraction in the previous year.
2026-02-27
Iceland Economy Returns to Growth in Q3
Iceland’s economy expanded by 1.2% year-on-year in Q3 2025, rebounding from a revised 0.2% contraction in the previous three-month period. The main contributor to growth was household final consumption, which grew 4.2%, mainly on the back of increased spending on service-related goods. At the same time, gross fixed capital formation and government consumption rose 2.2% and 0.9%, respectively. Meanwhile, net external demand had an estimated negative contribution of 4.5% to growth, reflecting a widening trade deficit with exports up 2.6% and imports climbing 13.5%. On a seasonally adjusted quarterly basis, the GDP shrank by 0.2% in Q3, after a revised 0.4% decline in the prior period.
2025-11-28