Iceland's economic growth has remained stagnant, as the country's GDP for the fourth quarter of 2024 mirrored the previous quarter's contraction of -1.4%. The data, updated as recently as February 28, 2025, indicates no change quarter-over-quarter, maintaining the negative growth trajectory observed in the third quarter of 2024.
There was hope that economic recovery might emerge in the latter part of the year after a challenging third quarter, but the consistent GDP indicator suggests that the country's economy has continued to struggle under the same pressures. The lack of change between these consecutive quarters reflects ongoing challenges that Iceland's economy faces.
Analysts expected possible improvements as adjustments to economic policy measures take effect, but the most recent figures indicate that such measures have yet to result in significant growth. With 2025 underway, economic stakeholders are closely monitoring developments in hopes of reversing the stagnation and fostering positive growth in future quarters. The focus will likely shift to identifying and addressing the underlying factors contributing to the economy's current flatline.
