Iceland GDP Growth Rate (2026)
Iceland has a small advanced economy supported by tourism, fisheries, renewable energy, services, and domestic consumption. This page examines its GDP growth trend, historical performance, regional position, and outlook.
GDP Growth Rate 2026
+1.9%
Annual real GDP growth
World Rank
#148
Out of 195 countries
Change vs 2025
+0.6 pp
2025: +1.3%
Europe Rank
#22
Out of 43 countries
1. Iceland GDP Growth Rate in 2026
Icelandic economic growth is influenced by tourism, household demand, fisheries, investment, and financial conditions. Visitor flows and global travel demand remain especially important.
2. Iceland GDP Growth Rate Trends (1980–2026)
Iceland’s growth history has been shaped by financial cycles, tourism expansion, fisheries, and renewable-energy development. Its small size can lead to noticeable economic swings.
3. Iceland GDP Growth Rate (Historical Data)
| Year | GDP Growth Rate | Change (pp) |
|---|---|---|
| 2026 | +1.9% | +0.6 pp |
| 2025 | +1.3% | +2.6 pp |
| 2024 | -1.3% | -6.3 pp |
| 2023 | +5.0% | -3.9 pp |
| 2022 | +8.9% | +3.7 pp |
| 2021 | +5.2% | +11.8 pp |
| 2020 | -6.6% | -7.7 pp |
| 2019 | +1.1% | -3.6 pp |
| 2018 | +4.7% | +1.2 pp |
| 2017 | +3.5% | -2.7 pp |
| 2016 | +6.2% | +2.4 pp |
| 2015 | +3.8% | +1.9 pp |
| 2014 | +1.9% | -1.7 pp |
| 2013 | +3.6% | +2.4 pp |
| 2012 | +1.2% | -0.2 pp |
| 2011 | +1.4% | +3.6 pp |
| 2010 | -2.2% | +6.1 pp |
| 2009 | -8.3% | -10.0 pp |
| 2008 | +1.7% | -7.0 pp |
| 2007 | +8.7% | +3.0 pp |
| 2006 | +5.7% | -1.3 pp |
| 2005 | +7.0% | -0.6 pp |
| 2004 | +7.6% | +5.3 pp |
| 2003 | +2.3% | +1.8 pp |
| 2002 | +0.5% | -3.3 pp |
| 2001 | +3.8% | -1.1 pp |
| 2000 | +4.9% | +1.0 pp |
| 1999 | +3.9% | -3.1 pp |
| 1998 | +7.0% | +2.9 pp |
| 1997 | +4.1% | -0.4 pp |
| 1996 | +4.5% | +4.4 pp |
| 1995 | +0.1% | -3.5 pp |
| 1994 | +3.6% | +2.3 pp |
| 1993 | +1.3% | +4.7 pp |
| 1992 | -3.4% | -3.2 pp |
| 1991 | -0.2% | -1.4 pp |
| 1990 | +1.2% | +0.9 pp |
| 1989 | +0.3% | +0.4 pp |
| 1988 | -0.1% | -8.6 pp |
| 1987 | +8.5% | +2.2 pp |
| 1986 | +6.3% | +3.0 pp |
| 1985 | +3.3% | -0.8 pp |
| 1984 | +4.1% | +6.3 pp |
| 1983 | -2.2% | -4.4 pp |
| 1982 | +2.2% | -2.1 pp |
| 1981 | +4.3% | -1.4 pp |
| 1980 | +5.7% | — |
4. Iceland GDP Growth Performance
Current Growth Rate
+1.9%
(2026 to 2026)
5-Year Average
+3.2%
(2022 to 2026)
10-Year Average
+2.4%
(2017 to 2026)
20-Year Average
+2.1%
(2007 to 2026)
The economy benefits from strong institutions, tourism, and abundant renewable energy, while high interest rates and external travel conditions can affect momentum.
5. Iceland GDP Growth Rate vs Europe and World
Iceland
+1.9%
Europe Average
+1.9%
World Average
+2.8%
0.0%
1.4%
2.8%
Annual real GDP growth (%)
Iceland’s GDP growth rate is approximately
0.0 pp
above the
Europe average
and
0.9 pp
below the world average.
6. Iceland GDP Growth Rate Ranking in Europe
| Rank | Country | GDP Growth Rate |
|---|---|---|
| #18 | Slovenia | +2.0% |
| #19 | Ukraine | +2.0% |
| #20 | Sweden | +2.0% |
| #21 | Portugal | +1.9% |
| #22 | Iceland | +1.9% |
| #23 | Moldova | +1.9% |
| #24 | Greece | +1.8% |
| #25 | Hungary | +1.7% |
| #26 | Luxembourg | +1.6% |
7. Top 10 Fastest-Growing Countries in the World (2026)
8. GDP Growth Rate and Economy Size in Iceland
Iceland GDP (Nominal)
$43.8 Billion
(2026)
Iceland GDP Growth Rate
+1.9%
(2026)
Iceland’s growth can be more volatile than that of larger European economies because a few sectors account for a large share of activity.
Explore more:
Iceland GDP
9. Iceland GDP Growth Rate Forecast
The outlook depends on tourism, investment, household demand, fisheries, and financial conditions. External shocks and inflation remain important risks.
| Year | GDP Growth Rate | Change |
|---|---|---|
| 2027 | +2.1% | +0.2 pp |
| 2028 | +2.4% | +0.3 pp |
| 2029 | +2.4% | 0.0 pp |
| 2030 | +2.4% | 0.0 pp |
10. Iceland GDP Growth Rate: Key Findings
Iceland GDP growth rate is estimated at +1.9% in 2026.
It ranks #148 globally and #22 in Europe by annual GDP growth rate.
The growth rate accelerated by 0.6 percentage points compared with 2025.
The 5-year average GDP growth rate is +3.2%.
The 10-year average GDP growth rate is +2.4%.
The current rate is 0.0 percentage points above the Europe average.
The current rate is 0.9 percentage points below the world average.
The forecast GDP growth rate is +2.4% in 2030, 0.5 percentage points above the 2026 rate.
11. What Is GDP Growth Rate?
GDP growth rate measures the percentage change in a country’s real gross domestic product from one period to the next, usually year over year.
GDP Growth Rate
=
(Real GDPₜ − Real GDPₜ₋₁)
÷
Real GDPₜ₋₁ × 100
A positive rate indicates economic expansion, while a negative rate indicates contraction. Real GDP growth is preferred for growth comparisons because it adjusts for price changes.
12. Methodology and Data Sources
Primary Source:
International Monetary Fund (IMF)
Additional Source:
World Bank
Measure:
Annual percentage change in real GDP
Unit:
Percent (%)
Comparisons:
Year-to-year rate differences are shown in percentage points (pp)
Update Frequency:
Annually and when new forecasts are released
Last Updated:
November 2026
13. Iceland GDP Growth Rate FAQs
Iceland GDP growth rate is estimated at +1.9% in 2026.
Iceland ranks #148 globally and #22 in Europe by annual GDP growth rate.
The economy is expanding, with real GDP growth of approximately +1.9% in 2026.
Iceland GDP growth rate was +3.8% in 2015.
Iceland GDP growth rate is 0.0 percentage points above the Europe average.
15. Explore GDP Growth Rate
Disclaimer:
All data are estimates based on IMF, World Bank,
United Nations and related economic datasets.
Figures may differ from official national statistics.