Financial intermediation, real estate, and business activities contributed 24.1% to the gross value added (GVA) in 2024, followed by mining, manufacturing, and utilities with 15.3%, and wholesale, retail, and hotels with 13.3%. According to the analyst estimates, the three sectors are expected to grow by 5.0%, 4.9%, and 6.5%, respectively, in 2025.
According to the analyst estimates, Reykjavik accounted for 57.7% of Iceland’s GDP and was home to 61.4% of the country’s population in 2024.
According to the analyst estimates, Reykjavik accounted for 57.7% of Iceland’s GDP and was home to 61.4% of the country’s population in 2024.
Key Highlights
According to the Icelandic government, $6.5 million was allocated in 2024 for infrastructure improvements at major natural and cultural heritage sites, including Geysir, Gullfoss, and Látrabjarg cliffs. The plan, part of a broader $19.5 million investment through 2026, includes 102 projects, with 62 new initiatives focused on trail construction, signage, and parking upgrades. Notable projects include major developments at Geysir ($1.2 million), parking at Látrabjarg ($363,000), and walkway enhancements at Dettifoss and Gullfoss.Scope
- Macroeconomic Country Outlook Reports evaluate a country's investment potential through its political, economic, social, technological, legal, and environmental (PESTLE) framework.
- This comprehensive analysis offers a holistic view of the economy, serving as a strategic tool to understand market dynamics, business potential, and operational direction. Each PESTLE factor is examined based on four parameters: current strengths, current challenges, future prospects, and future risks.
- These insights support strategic planning by highlighting opportunities and risks within the economy, helping businesses and investors make informed decisions.
- The report aims to provide a detailed understanding of the country's macroeconomic environment to facilitate effective decision-making and strategy development.
Reasons to Buy
- Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
- PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
- Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
- This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.
Table of Contents
- Did You Know?
- Country Highlights
- Key Economic Updates
- Country Snapshot
- Political Landscape
- Economic Landscape
- Social Landscape
- Technological Landscape
- Legal Landscape
- Environmental Landscape
- Outlook
- Exhibit 1: Iceland’s Performance in Terms of its Country Risk Analysis in Comparison to Europe and the World Average
- Exhibit 2: Performance Overview (Score: 0-100)
- Exhibit 3: Broad Categories and Weights Behind the Index
- Exhibit 4: ICEXI Index (February 2024 - February 2025)
- Exhibit 5: Key Sectors’ Contribution to the Economy
- Exhibit 6: FDI Inflows and FDI Inward Stock (2019-23)
- Exhibit 7: Greenfield FDI Projects and Net Cross-border M&A Deals (2019-23)
- Exhibit 8: Key Infrastructure Indicators
- Exhibit 9: Real GDP and Household Consumption Growth Rate (2020-27f)
- Exhibit 10: Real GDP Growth Rate Comparison (2024e)
- Exhibit 11: Volume of Exports and Imports Growth (2020-27f)
- Exhibit 12: Current Account Balance (2020-27f)
- Exhibit 13: Top Three Commodity Exports, % of Total Exports (2019-23)
- Exhibit 14: Exports of Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates, % of World’s Total (2023)
- Exhibit 15: Interest Rates (February 2020 - February 2025)
- Exhibit 16: Exchange Rate and Inflation (2020-27f)
- Exhibit 17: Public Finance (2020-27f)
- Exhibit 18: General Government Debt (2020-27f)
- Exhibit 19: Unemployment Rate (2020-27f)
- Exhibit 20: Labor Force Participation Rate (2020-27f)
- Exhibit 21: Average Annual Wages (2020-27f)
- Exhibit 22: Rural/Urban Share of Total Population (2015, 2020, 2025f, 2030f)
- Exhibit 23: Age-group Share of Total Population (2015, 2020, 2025f, 2030f)
- Exhibit 24: Gender Split (2015, 2020, 2025f, 2030f)
- Exhibit 25: Internet Users as a Percentage of Total Population, Mobile Penetration Rate and Broadband Penetration Rate (2024e)
- Exhibit 26: Number of Patents Granted per Million Population (2023)
- Exhibit 27: High-technology Exports, % of Manufactured Exports (2023)
- Exhibit 28: Index of Economic Freedom Score, 2024
- Exhibit 29: Corruption Perceptions Index (Rankings) (2024)
- Exhibit 30: Renewable Energy Capacity (2020-24e)
- Exhibit 31: CO2 Emissions (2018-22)
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Iceland Air Group
- Frisk
- Eimskip
