After a challenging period, Iceland's economic outlook has brightened in the third quarter of 2025. The country's GDP has shown a notable increase, reaching 1.2%—a significant rebound from the -0.2% contraction experienced in the preceding quarter. This recovery was officially reported on November 28, 2025, reflecting a comparative analysis on a year-over-year basis.
The latest data indicated a positive shift in economic activity when measured against the same quarter of the previous year. This improvement in GDP suggests that Iceland has managed to weather some of the economic pressures that may have impacted the country earlier in 2025. Economists and policymakers alike will be heartened by this development, as it hints at a strengthening domestic economy that could bode well for future growth opportunities.
Overall, Iceland's return to positive GDP growth in Q3 reflects resilience and adaptability, marking a significant turnaround from the negative growth faced in Q2. This rise will likely stimulate both confidence among investors and policy discussions around sustaining this upward economic trajectory as the country moves towards the end of the year and into 2026.
