Iceland Import Data

Icelandic Import/Export Overview and Domestic Market Update

Imports & Exports

• Top Trade Partners: Iceland primarily trades with the UK, Germany, Norway, and the Netherlands, highlighting its close economic ties with Europe.

• Top 5 Imports: In 2023, Iceland's main imports include machinery, vehicles, fish and seafood (for re-export), pharmaceutical products, and electrical equipment, collectively accounting for over 40% of total imports.

• Top 5 Exports: Iceland's leading exports are fish and seafood (comprising nearly 40% of total exports), aluminum, machinery, and pharmaceuticals, demonstrating a significant reliance on its marine and industrial sectors.

• Trade Balance: Iceland experiences a trade surplus, notably in fish products, which is a critical factor in its economic stability. However, the cost of imports, especially machinery and fuels, can fluctuate the balance.

• Trade Policy Snapshot: Iceland adheres to the European Economic Area (EEA) regulations, promoting free trade within Europe while maintaining certain customs and import duties on non-European goods to protect domestic industries.

Domestic Market

• Consumer Spending: Consumer spending in Iceland remains robust, driven by a strong tourism sector and a high standard of living. However, the potential impact of global economic downturns is a concern for future stability.

• Interest Rates & Inflation: Interest rates in Iceland are relatively high to combat inflation, which has been rising due to global energy prices and supply chain disruptions. The Central Bank of Iceland adjusts rates to maintain economic balance.

• Supply Chain Dynamics: Iceland's supply chains, heavily dependent on maritime transport, have shown resilience but are susceptible to global shocks. The country has invested in logistics efficiency to minimize disruptions.

• Industry Performance: Key industries like fishing, aluminum production, and tourism have shown strong performance. The renewable energy sector is emerging as a new growth area, attracting foreign investment and fostering a green economy.

Overall Outlook

Iceland’s economy, while facing challenges from global trade dynamics and inflationary pressures, is bolstered by its strategic trade partnerships and a diversified economy. The focus on sustainability and innovation positions the country for continued economic growth.