FX.co ★ Iceland Trade Deficit Hits a Record High

Iceland witnessed a considerable widening of its trade deficit, which reached ISK 63.4 billion in May 2025, up from ISK 20.9 billion in the same month of the prior year, marking an all-time high. This increase was largely due to a 30% year-on-year surge in imports, totaling ISK 143.2 billion. This growth in imports was primarily fueled by a remarkable 121% rise in the acquisition of capital goods, attributed to significant imports of computer products by data center operators within the country, and a 48% increase in transport equipment. In contrast, there was a notable decrease in purchases of fuels and lubricants, down by 14%, and food and beverages, which fell by 10%. On the export front, there was a 10% decline from the previous year, with exports totalling ISK 79.8 billion. The downturn in exports was influenced by reduced shipments of agricultural products (-20%), marine products (-17%), farmed fish (-14%), and manufacturing goods (-6%). Over the past twelve months, Iceland's trade deficit has escalated to ISK 479.5 billion from ISK 381.8 billion noted in the previous period.