Iceland’s trade deficit widened sharply to ISK 70.3 billion in October 2026, up from ISK 24.0 billion in the same month a year earlier. Imports jumped 51% year-on-year to ISK 165.1 billion, driven mainly by a surge in capital goods (+159%), as well as higher imports of fuels and lubricants (+34%), food and beverages (+17%), industrial supplies (+5%), transport equipment (+5%), and consumer goods (+3%).
Exports also increased, rising 11% to ISK 94.8 billion. The expansion was supported by stronger shipments of agricultural products (+59%), manufactured products (+18%), marine products (+8%), and farmed fish (+3%), which more than offset a steep decline in other products (-59%).
Over the past twelve months, Iceland’s trade deficit reached ISK 513.6 billion, compared with ISK 496.6 billion a year earlier. Both sides of the trade ledger grew over this period: imports were up 3% to ISK 1,488.6 billion, while exports increased by 3% to ISK 975.0 billion.
