Iceland GDP Annual Growth Rate

Last Release

Jun 30, 2025

Actual

-1.9

Units In

2.6

Frequency

Quarterly

Next Release

Nov 28, 2025

Time to Release

2 Months 27 Days 8 Hours

Highest	Lowest	Average	Date Range	Source
94.8 Mar 2008	-10.5 Jun 2020	5.92 %	1995-2025	Statistics Iceland

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.

Latest Updates

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.