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. source: Statistics Iceland

The Gross Domestic Product (GDP) in Iceland expanded 1.20 percent in the third quarter of 2025 over the same quarter of the previous year. GDP Annual Growth Rate in Iceland averaged 3.11 percent from 1995 until 2025, 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 February of 2026.

The Gross Domestic Product (GDP) in Iceland expanded 1.20 percent in the third quarter of 2025 over the same quarter of the previous year. GDP Annual Growth Rate in Iceland is expected to be 1.50 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
2025-08-29 09:00 AM
GDP Growth Rate YoY
Q2 -1.9% 2.7% 1.9%
2025-11-28 09:00 AM
GDP Growth Rate YoY
Q3 1.2% -0.2% 0.5%
2026-02-27 09:00 AM
GDP Growth Rate YoY
Q4 1.2% 0.7%


Related Last Previous Unit Reference
Full Year GDP Growth -1.00 5.20 percent Dec 2024
GDP Growth Rate YoY 1.20 -0.20 percent Sep 2025
GDP Constant Prices 923308.00 887508.00 ISK Million Sep 2025
GDP Growth Rate -0.20 -0.40 percent Sep 2025
Gross Fixed Capital Formation 235016.00 264311.00 ISK Million Sep 2025
Gross National Product 3562510.00 3551164.00 ISK Million Dec 2024


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
1.20 -0.20 13.10 -11.10 1995 - 2025 percent Quarterly
NSA

News Stream
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
Iceland Economy Shrinks 1.9% in Q2
Iceland’s economy contracted by 1.9% year-on-year in the second quarter of 2025, following an upwardly revised 2.7% rise in the previous quarter. This marked the lowest reading since the fourth quarter of 2020 as decreases were seen in fixed investments (8.3% vs 18.4% in Q1) and government spending (0.3% vs 2.3%). Net external demand also contributed negatively to the GDP, as exports fell (-0.2% vs 4.6%), while imports moderated (13.4% vs 13.7%). Meanwhile, household consumption increased by 3.1% from 2.8% in the previous quarter. On a seasonally adjusted quarterly basis, the GDP shrank by 0.7% in Q2, reversing an upwardly revised 2.9% gain in the preceding quarter.
2025-08-29
Iceland GDP Rebounds in Q1
Iceland’s economy expanded by 2.6% year-on-year in the first quarter of 2025, following a downwardly revised 0.8% contraction in the previous quarter. This marked the fastest expansion since the third quarter of 2023. Growth was driven by a surge in fixed investments (18.0% vs 15.6% in Q4), household consumption (2.3% vs 0.8%), and government spending (2.6% vs 2.1%). Net external demand also contributed positively to the GDP, as exports (13.5% vs. 10.5%) rose more than imports (4.4% vs 1.4%). On a seasonally adjusted quarterly basis, GDP rose by 2.7% in the March quarter, rebounding from a 1.4% fall in the preceding period.
2025-05-30