Iceland GDP Annual Growth Rate

Last Release

Mar 31, 2025

Actual

2.6

Units In

2.3

Frequency

Quarterly

Next Release

Aug 29, 2025

Time to Release

2 Months 28 Days 5 Hours

Highest	Lowest	Average	Date Range	Source
94.8 Mar 2008	-10.5 Jun 2020	5.99 %	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 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.