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5 May 2025 null

Iceland's economy in 2025

nova.global

 

Iceland's economy in 2025 showcases a blend of resilience and innovation, underpinned by its commitment to renewable energy and strategic sectoral development.

 

Key Economic Sectors 👇

 

1️⃣ Renewable Energy: Iceland stands out globally with nearly 100% of its electricity generated from renewable sources, primarily hydroelectric and geothermal energy. This sustainable energy infrastructure supports energy-intensive industries, notably aluminum smelting, which benefits from the country's low-cost electricity.*

 

2️⃣ Tourism: Tourism has become a cornerstone of Iceland's economy, contributing significantly to GDP and export revenues. The nation's unique landscapes and natural phenomena continue to attract visitors worldwide.**

 

3️⃣ Fisheries: Deep-sea fishing remains vital, accounting for approximately 40% of Iceland's exports. The industry supports export income and provides employment opportunities across the country. ​

 

4️⃣ Agriculture: While agriculture represents a smaller portion of the economy, recent initiatives aim to enhance food security by increasing domestic production, including cultivating crops like corn.***

 

Iceland maintains robust trade relations, primarily with European nations. Key export destinations include the Netherlands, Germany, the United Kingdom, and the United States. The country also has a Free Trade Agreement with China, facilitating trade in goods and services. ​

 

In 2024, Iceland's GDP experienced fluctuations, with a contraction of 0.5% in the third quarter, largely due to a decrease in external trade in services. However, strong investment activities, particularly in the IT and fishing sectors, indicate a resilient economic foundation poised for recovery. ​

 

Iceland's strategic focus on sustainable energy, tourism, and fisheries, coupled with its proactive trade engagements, positions the nation for continued economic resilience and growth.​

 

Nova Global offers reliable parcel shipping services between businesses and Iceland while exploring new opportunities within the E-commerce sector.

 

*Source: https://lnkd.in/dRqQuU84
**Source: https://lnkd.in/dkm3-MYM
***Source: https://lnkd.in/dDJfnqXm