Reykjavik, Iceland – Iceland's economy has experienced a stark reversal in growth, with its Gross Domestic Product (GDP) contracting by -4.0% in the first quarter of 2024. This drop marks a significant downturn from the fourth quarter of 2023, when the GDP had managed a positive growth of 0.6%. The latest data was updated and released on 31 May 2024.
The year-over-year comparison highlights the severity of the economic contraction. While the previous quarter's slight growth contrasted positively against the same period in the previous year, the first quarter of 2024 saw a deep dive into negative territory when compared to the corresponding quarter in 2023.
Economic analysts are contemplating various factors that could have contributed to this contraction. Observers are now keenly watching Iceland's policy responses and potential measures to mitigate further economic decline as the island nation navigates these challenging times. More detailed insights and analyses are expected in the forthcoming updates from economic think tanks and government reports.
