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Iceland

EFTA Outside the euro area Population: 0.39 M (2025)

Source: Eurostat, data retrieved 2026-10-17; each indicator links to its dataset · Methodology and technical sheets

Economic situation

Iceland: real GDP fell 1.1% year on year (Q2 2026); previous quarter: 3.8%; EU27: 1.5%. Harmonised inflation (HICP) stands at 5.4% (09/2026), above the EU27 average (3.8%); core inflation, excluding energy and food, is 6.8%. The unemployment rate stands at 6.0% (08/2026), up 0.7 percentage points on a year earlier; the EU27 rate is 6.2%. The current account shows a deficit of 9.3% of GDP (Q2 2026). Its best European position is in "HICP energy" (1 of 36) and its worst in "Government interest payments" (29 of 29).

Key indicators

GDP growth-1.1%Q2 2026-0.4 pp year on year33 of 34 in EuropeInflation (HICP)5.4%09/2026+1.2 pp year on year31 of 36 in EuropeUnemployment rate6.0%08/2026+0.7 pp year on year17 of 30 in EuropeEmployment rate (20–64)83.7%Q2 2026-4.0 pp year on year2 of 34 in EuropeCurrent account (% GDP)-9.3%Q2 2026+0.1 pp year on year30 of 32 in EuropeGDP per capita (EU = 100)1272025 p-2.7% year on year6 of 33 in Europe

Trends

Activity: GDP, consumption and investment (real year-on-year change, %)
Prices: headline and core inflation (HICP, %)
Labour: total and youth unemployment (%)
External sector: current account, goods and services (% of GDP)
Government expenditure by function (COFOG) →What Iceland spends on: 10 functions and 69 sub-functions compared with the EU27, and the split by level of government.Regions of Iceland →4 regions with indicators on population, GDP, jobs, income and well-being (NUTS 1: 1 · NUTS 2: 1 · NUTS 3: 2).

All indicators

116 indicators for Iceland. Its NUTS 1, 2 and 3 regions, with their own indicators, are on the country's regions page.

GDP and national accounts

19
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Nominal GDP (quarterly) M€Q2 20268,952 M€+5.4%31 of 35
Real GDP, year-on-year change (quarterly) %Q2 2026-1.1%-0.4 pp33 of 34
Real GDP, chain-linked volume (quarterly) M€ (2020)Q2 20265,683 M€-1.1%31 of 35
Nominal GDP (annual) M€202534,157 M€+11.4%31 of 37
Real GDP growth (annual) %20251.1%+2.0 pp24 of 35
GDP per capita € per inhabitant2025 p87,160 €+9.9%4 of 35
Real GDP per capita € (2020) per inhabitant2025 p59,430 €-0.3%6 of 35
Real GDP per capita, annual change %2025 p-0.3%+2.4 pp33 of 34
GDP per capita in purchasing power standards PPS per inhabitant2025 p53,014 PPS+1.2%6 of 33
GDP per capita in PPS relative to the EU27 index EU27 = 1002025 p127-2.7%6 of 33
Household consumption, real year-on-year change %Q2 20260.8%-2.6 pp26 of 34
Government consumption, real year-on-year change %Q2 20261.2%+1.1 pp21 of 34
Gross fixed capital formation, real year-on-year change %Q2 20265.7%-2.9 pp13 of 33
Exports, real year-on-year change %Q2 2026-7.3%-10.8 pp34 of 34
Imports, real year-on-year change %Q2 20260.2%-14.0 pp30 of 34
Industry share of the economy % of GVA202513.9%-0.4 pp30 of 37
Construction share of the economy % of GVA20258.2%-0.1 pp5 of 37
Services share of the economy % of GVA202573.8%+0.4 pp13 of 37
Public administration, education and health share of the economy % of GVA202520.9%+0.2 pp5 of 37

Prices

24
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Consumer price level (HICP) index 2015 = 10009/2026141.22+5.4%18 of 36
HICP, annual rate of change %09/20265.4%+1.2 pp31 of 36
Core HICP (excluding energy, food, alcohol and tobacco) %09/20266.8%+2.8 pp34 of 36
HICP energy %09/2026-4.2%-6.7 pp1 of 36
HICP food, alcohol and tobacco %09/20264.1%-1.8 pp35 of 36
HICP services %09/20268.9%+2.1 pp34 of 36
HICP non-energy industrial goods %09/20262.4%+2.1 pp31 of 36
HICP alcoholic beverages and tobacco %09/20263.9%-1.5 pp23 of 36
HICP clothing and footwear %09/2026-0.7%-1.0 pp14 of 36
HICP furnishings and household equipment %09/20260.9%+1.6 pp19 of 36
HICP health %09/20265.4%+2.1 pp32 of 36
HICP information and communication %09/20265.8%+5.5 pp34 of 36
HICP recreation, sport and culture %09/20264.3%+0.9 pp24 of 36
HICP education services %09/20269.8%+5.8 pp35 of 36
HICP insurance and financial services %09/20263.5%-1.1 pp22 of 36
HICP personal care and miscellaneous goods and services %09/20265.9%+1.4 pp32 of 36
HICP, annual average rate %20253.7%-0.8 pp25 of 35
HICP electricity %11/202413.2%+6.3 pp29 of 35
HICP diesel %09/2026-6.5%-7.1 pp1 of 35
HICP petrol %09/2026-15.4%-14.0 pp1 of 35
House prices index 2015 = 100Q2 2026269.5+2.7%5 of 28
House prices, annual rate of change %Q2 20262.7%-3.6 pp24 of 29
Household electricity price (2 500–4 999 kWh, taxes included) €/kWhH1 20250.2019 €/kWh+18.6%16 of 38
Price level relative to the EU27 index EU27 = 1002025164.4+8.6%1 of 36

Government

9
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Government deficit (−) or surplus (+) (quarterly) % of GDPQ1 2026 p-1.8%-1.8 pp14 of 30
Total government revenue % of GDP202542.6%-0.3 pp22 of 29
Total government expenditure % of GDP202545.0%-2.1 pp20 of 29
Government interest payments % of GDP20254.30%-0.30 pp29 of 29
Government investment (GFCF) % of GDP20253.90%-0.10 pp17 of 29
Tax burden (taxes and social contributions) % of GDP202436.9%+1.0 pp19 of 30
Taxes on income and wealth % of GDP202419.1%+0.1 pp3 of 30
VAT % of GDP20249.2%+0.7 pp7 of 30
Social contributions % of GDP20243.0%0.0 pp29 of 30

Government expenditure by function (COFOG)

20
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
General public services expenditure (COFOG) % of GDP20247.6%-1.3 pp4 of 30
Defence expenditure (COFOG) % of GDP20240.2%0.0 pp29 of 30
Public order and safety expenditure (COFOG) % of GDP20241.8%+0.3 pp9 of 30
Economic affairs expenditure (COFOG) % of GDP20244.9%0.0 pp20 of 30
Environmental protection expenditure (COFOG) % of GDP20240.7%0.0 pp14 of 30
Housing and community amenities expenditure (COFOG) % of GDP20240.7%+0.1 pp13 of 30
Health expenditure (COFOG) % of GDP20248.6%+0.5 pp5 of 30
Recreation, culture and religion expenditure (COFOG) % of GDP20243.0%+0.1 pp1 of 30
Education expenditure (COFOG) % of GDP20247.0%+0.3 pp2 of 30
Social protection expenditure (COFOG) % of GDP202412.6%+1.9 pp26 of 30
General public services share of government expenditure (COFOG) %202416.2%-3.4 pp3 of 30
Defence share of government expenditure (COFOG) %20240.4%+0.1 pp30 of 30
Public order and safety share of government expenditure (COFOG) %20243.8%+0.5 pp16 of 30
Economic affairs share of government expenditure (COFOG) %202410.4%-0.4 pp20 of 30
Environmental protection share of government expenditure (COFOG) %20241.6%0.0 pp14 of 30
Housing and community amenities share of government expenditure (COFOG) %20241.4%0.0 pp15 of 30
Health share of government expenditure (COFOG) %202418.3%+0.4 pp4 of 30
Recreation, culture and religion share of government expenditure (COFOG) %20246.4%-0.1 pp1 of 30
Education share of government expenditure (COFOG) %202414.9%+0.1 pp2 of 30
Social protection share of government expenditure (COFOG) %202426.6%+2.9 pp28 of 30

Business and activity

4
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Active enterprises enterprises2024 e47,585+3.5%34 of 34
Enterprise birth rate %2024 e11.2%-0.0 pp15 of 34
Enterprise death rate %2024 ep7.3%-1.2 pp15 of 33
R&D expenditure % of GDP20242.47%-0.15 pp7 of 32

Labour market and productivity

20
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Unemployment rate % of labour force08/20266.0%+0.7 pp17 of 30
Youth unemployment rate (under 25) % of labour force08/202610.3%-0.2 pp4 of 24
Unemployed persons thousand persons08/202614+7.7%2 of 30
Unemployment rate (annual) % of labour force20254.5%+0.9 pp10 of 34
Long-term unemployment rate % of labour force20250.6%+0.2 pp2 of 34
Employment rate (20–64) % of populationQ2 202683.7%-4.0 pp2 of 34
Employed persons (15–74) thousand personsQ2 2026222-3.5%34 of 34
Employed persons per inhabitant % of population2025 p57.0%-0.4 pp5 of 33
Hours worked per inhabitant hours per year2025 p818-2.9%20 of 32
Labour productivity per hour worked relative to the EU27 index EU27 = 1002025 p121.5+0.1%8 of 31
Labour productivity per person employed, EU27 = 100 index EU27 = 1002025 p108.8-1.5%8 of 31
Real labour productivity per hour, annual change %2025 p2.7%+6.0 pp6 of 32
Nominal unit labour cost, annual change %2025 p6.1%-1.4 pp27 of 33
Hours worked per employed person hours per year2025 p1,437-2.1%28 of 32
Compensation per employee € per year2025 p85,093 €+10.2%3 of 33
Compensation per hour worked € per hour2025 p58.9 €+12.4%3 of 31
Compensation per employee in PPS, EU27 = 100 index EU27 = 1002025 p108.4-2.7%10 of 31
Compensation per hour worked in PPS, EU27 = 100 index EU27 = 1002025 p115.9-0.9%10 of 30
Job vacancy rate (B–S) %Q4 20251.3%-0.2 pp20 of 31
Population aged 25–64 with tertiary education %202546.1%-0.2 pp9 of 34

Households

7
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Household saving rate % of disposable income202412.4%+3.2 pp15 of 27
Real household disposable income per capita, annual change %2024 p2.5%-0.1 pp16 of 27
Median equivalised income PPS202022,645 PPS-4.1%6 of 35
Gini coefficient of disposable income 0–100202024.0+1.3%3 of 35
People at risk of poverty or social exclusion (AROPE) % of population202011.7%+0.1 pp2 of 35
Housing cost overburden rate % of population202013.1%+0.5 pp30 of 35
Household debt (loans) % of GDP202570.5%-1.6 pp26 of 31

External sector and financing

5
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Current account balance % of GDPQ2 2026-9.3%+0.1 pp30 of 32
Goods balance % of GDPQ2 2026-12.0%-1.6 pp27 of 32
Services balance % of GDPQ2 20265.2%+0.2 pp13 of 32
Net international investment position % of GDPQ2 202646.9%+8.6 pp8 of 32
Net direct investment % of GDPQ2 20261.2%+2.2 pp10 of 32

Demography

6
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Population on 1 January persons2025389,444+1.5%37 of 38
Total population change per 1,000 inhabitants202512.5-17.8%6 of 39
Net migration (including statistical adjustment) per 1,000 inhabitants20258.0-25.9%8 of 39
Median age of population years202537.2+0.5%37 of 38
Old-age dependency ratio (65+ / 15–64) %202523.9%+0.3 pp4 of 38
Life expectancy at birth years202482.8+0.5%12 of 37

Public-sector efficiency

2
IndicatorPeriodValueYear-on-year changeTrendRank in Europe
Employment in public administration and defence (NACE O) thousand persons2025 p15+3.8%26 of 26
Total employment (national accounts) thousand persons2025 p223+0.5%26 of 26