Iceland’s gross domestic product staged a robust rebound in the first quarter of 2026, with quarter-over-quarter growth coming in at 3.7%, according to data updated on 29 May 2026. The latest figures mark a sharp turnaround from the fourth quarter of 2025, when GDP contracted by 0.8% compared with the previous quarter.
The comparison is based on quarter-over-quarter changes, with the current reading showing how output in the first quarter of 2026 compares to the final quarter of 2025, while the earlier -0.8% figure reflected the change from the third to the fourth quarter of 2025. The swing from negative to solid positive growth suggests a significant improvement in economic momentum at the start of 2026.
