Iceland GDP Annual Growth Rate

Last Release

Jun 30, 2024

Actual

-0.3

Units In

-4

Frequency

Quarterly

Next Release

Nov 29, 2024

Time to Release

2 Months 28 Days 8 Hours

Highest	Lowest	Average	Date Range	Source
94.8 Mar 2008	-10.5 Jun 2020	6.11 %	1995-2024	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 0.3% year-on-year in the second quarter of 2024, marking the second consecutive period of decline but cooling significantly from a revised 3.5% drop in the previous period. The decline was primarily due to a reduction in household expenditures (-0.9% vs. 0.2% in Q1), driven by decreased consumption of durable goods, such as car purchases. Net trade also negatively impacted GDP, with exports decreasing by 2.2% (vs. -1.9%) and imports growing by 2.9% (vs. 0%). However, this was nearly offset by a sharp increase in fixed investments (4.6% vs. 3.4%), driven by higher business investments (7.1%) and residential construction (3.4%). Government spending also rose (2.7% vs. 1.8%). On a seasonally adjusted quarterly basis, GDP expanded by 1.7%, rebounding sharply from a 1% decline in the previous quarter and marking the fastest growth in one-and-a-half years.