FX.co ★ Iceland GDP Rebounds in Q1

In the first quarter of 2025, Iceland's economy experienced a 2.6% year-on-year growth, rebounding from a revised 0.8% contraction in the previous quarter. This represents the most significant expansion since the third quarter of 2023. The primary drivers of growth included a notable rise in fixed investments, which jumped to 18.0% from 15.6% in the fourth quarter. Additionally, household consumption increased to 2.3% from 0.8%, and government expenditure grew to 2.6% from 2.1%. Moreover, net external demand positively impacted GDP, with exports climbing to 13.5% compared to 10.5%, surpassing the growth in imports, which increased by 4.4% versus 1.4%. On a seasonally adjusted quarterly basis, GDP advanced by 2.7% in the March quarter, recovering from a 1.4% decline in the previous period.