Iceland GDP Annual Growth Rate

Last Release

Sep 30, 2025

Actual

1.2

Units In

-1.9

Frequency

Quarterly

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
94.8 Mar 2008	-10.5 Jun 2020	5.88 %	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 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.