Gross domestic product (GDP) in Iceland 2029*

The statistic shows gross domestic product (GDP) in Iceland from 1987 to 2022, with projections up until 2029. Gross domestic product (GDP) denotes the aggregate value of all services and goods produced within a country in any given year. GDP is an important indicator of a country's economic power. In 2022, Iceland's gross domestic product amounted to around 28.7 billion U.S. dollars. 

Iceland's recovery

Iceland's gross dometic product has increased dramatically since 2010. Iceland’s economy took a big hit during the economic crisis of 2008, but has been showing increasing strength since then. When Iceland’s banks were on the verge of collapse in 2008, the country - unlike the United States - did not come to the rescue, but let their banks fail. Iceland’s recovery should be seen as no less than remarkable.

In 2015, Iceland had reduced its inflation rate from 7.5 percent in 2010 to 1.6 percent and the unemployment rate dropped from 7.6 percent in 2010 to 4.0 percent in 2015. The GDP growth rate is strong at around 4 percent and the country is successfully reducing its national debt.

Iceland had to borrow money to stay afloat during the crisis. However, one of the reasons why Iceland has been able to recover so quickly is because it was able to devalue its own currency to a large extend. This allowed the country to keep wages the same and make Iceland more competitive on the world market. Countries such as Greece are not so lucky because they do not have the ability to use this economic parameter.