Iceland

Iceland Economy

Iceland's economy in numbers:

Nominal GDP of USD 28.1 billion in 2022.

GDP per capita of USD 74,609 compared to the global average of USD 10,589.

Average real GDP growth of 3% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2020, services accounted for 76% of overall GDP, manufacturing 9%, other industrial activity 11%, and agriculture 4%. Looking at GDP by expenditure, private consumption accounted for 52% of GDP in 2021, government consumption 27%, fixed investment 23%, and net exports -2%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 12% of total merchandise exports, mineral fuels 1%, food 46%, ores and metals 40% and agricultural raw materials 1%, with other categories accounting for 0% of the total. In the same period, manufactured products made up 70% of total merchandise imports, mineral fuels 8%, food 11%, ores and metals 10% and agricultural raw materials 1%, with other goods accounting for 0% of the total. Total exports were worth USD 7 billion in 2023, while total imports were USD 9 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 3.0% in the decade to 2022. To read more about GDP growth in Iceland, go to our dedicated page.

Fiscal policy:

Iceland's fiscal deficit averaged 1.1% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 4.7% in the decade to 2022. For more information on Iceland's unemployment click here.

Inflation:

Inflation averaged 3.4% in the decade to 2022. Go to our Iceland inflation page for extra insight.

Monetary Policy:

Iceland's monetary policy rate ended 2022 at 6.00%, up from 5.38% a decade earlier. See our Iceland monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the krona weakened by 10.1% vs the U.S. dollar. For more info on the krona, click here.
Annual economic growth likely waned further in the final quarter of 2023, following a steep slowdown in the third. Consumer sentiment averaged below Q3 in Q4, as average inflation in Q4 was over three times above the 2.5% target of the Central Bank—whose monetary policy stance remained tight in Q4, continuing to dampen purchasing power. Moreover, the volcano eruption in the Reykjanes peninsula in December likely dented activity, though the extent of the economic fallout remains unclear. More positively, year-on-year hotel stays growth accelerated in October–November from Q3. Moreover, the merchandise exports downturn softened in the quarter from Q3, mirroring the dynamics displayed by goods imports. Meanwhile, the average unemployment rate dipped marginally in October–November from Q3, which should have lent some support to household budgets.
Projections out to 2028.

36 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 10 expert analysts.

Want to get insight on the economic outlook for Iceland in the coming years? FocusEconomics collects projections out to 2028 on 36 economic indicators for Iceland from a panel of 10 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Iceland economy. To download a sample report on the Iceland's economy, click here . To get in touch with our team for more information, fill in the form at the bottom of this page .

Iceland Economic Data

2018 2019 2020 2021 2022
Population (million) 0.3 0.4 0.4 0.4 0.4
GDP (USD bn) 26.3 24.7 21.6 25.6 28.1
GDP per capita (USD) 75,524 69,127 59,267 69,371 74,609
GDP (EUR bn) 22.3 22.0 18.9 21.6 26.7
GDP per capita (EUR) 64,066 61,757 51,915 58,667 70,945
GDP (ISK bn) 2,844 3,026 2,920 3,250 3,797
Economic Growth (Nominal GDP, ann. var. %) 7.6 6.4 -3.5 11.3 16.8
Economic Growth (GDP, ann. var. %) 4.9 1.9 -7.2 4.5 7.2
Private Consumption (ann. var. %) 4.8 1.7 -3.4 7.1 8.5
Government Consumption (ann. var. %) 4.7 3.9 5.2 2.3 2.2
Fixed Investment (ann. var. %) 2.3 -4.1 -7.4 10.8 7.6
Exports (G&S, ann. var. %) 0.4 -5.3 -31.0 14.6 22.3
Imports (G&S, ann. var. %) -0.9 -9.1 -20.6 19.9 19.9
Unemployment (% of active population, aop) 3.1 3.9 6.4 6.0 3.8
Fiscal Balance (% of GDP) 1.0 -1.6 -8.9 -8.5 -4.1
Public Debt (% of GDP) 63.2 66.6 77.8 75.6 68.7
Inflation (CPI, ann. var. %, aop) 2.7 3.0 2.8 4.4 8.3
Key Interest Rate (% eop) 4.50 3.00 0.75 2.00 6.00
Exchange Rate (ISK per USD, eop) 116 121 127 130 143
Exchange Rate (ISK per USD, aop) 108 123 135 127 135
Exchange Rate (ISK per EUR, eop) 133 136 156 148 152
Exchange Rate (ISK per EUR, aop) 128 137 155 150 142
Current Account Balance (EUR bn) 0.9 1.4 0.2 -0.6 -0.6
Current Account Balance (% of GDP) 4.3 6.5 0.9 -3.0 -2.3
Merchandise Trade Balance (EUR bn) -1.3 -0.8 -0.6 -1.0 -1.5
Foreign Direct Investment (EUR bn) -0.3 -0.2 -0.8 0.1 0.6

Free Sample Report

Interested in Iceland economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest