10.08.202609:18:12UTC+00Iceland Trade Deficit Narrows to 4-Month Low

Iceland recorded a trade deficit of ISK 40.6 billion in July 2026, down from ISK 44 billion in the same month a year earlier and the smallest gap since March. Exports increased 19% year-on-year to ISK 86.5 billion, supported by strong growth in shipments of farmed fish (+62%), manufactured goods (+34%), and agricultural products (+1%). These gains more than offset declines in exports of marine products (-5%) and other goods (-8%).

Imports rose 9% to ISK 127.1 billion, largely due to higher purchases of capital goods (+29%), food and beverages (+13%), and industrial supplies (+3%). In contrast, imports of fuels and lubricants (-1%), transport equipment (-7%), and consumer goods (-1%) declined.

Over the twelve months to July, Iceland’s trade deficit reached ISK 441.9 billion, improving from ISK 504.8 billion in the preceding twelve-month period. Exports were broadly unchanged at ISK 949.5 billion, while imports fell 5% to ISK 1,391.4 billion.