Iceland’s trade deficit narrowed to ISK 56.6 billion in May 2026, down from a revised ISK 63.1 billion in the same month a year earlier. Exports declined by 11% year-on-year to ISK 71 billion, mainly reflecting reduced shipments of agricultural products (-36.3%), manufactured goods (-17.0%), and pharmaceutical products (-35.1%).
Imports also fell by 11%, to ISK 127.6 billion, driven by lower purchases of capital goods (-28.5%), transport equipment (-6.6%), and fuels and lubricants other than petroleum products (-41.3%). In contrast, imports of food and beverages rose by 33.1%.
Over the past twelve months, Iceland’s trade deficit reached ISK 426 billion. Exports were down 6%, largely owing to a 15% drop in manufactured goods, which represented 48% of total exports. Imports declined by 9%, mainly due to reduced purchases of capital goods and industrial supplies.
