FX.co ★ Iceland's Economy Bounces Back: GDP Growth Climbs to 2.6% in Q1 2025

Reykjavik, Iceland - In a promising turn for Iceland's economy, the GDP growth has been reported at 2.6% for the first quarter of 2025, according to the latest figures released on May 30, 2025. This marks a notable uptick from the preceding quarter's GDP performance, which stood at 2.3%.

The data indicates a year-over-year comparison that highlights the country's gradual yet steady economic recovery. As of the fourth quarter of 2024, Iceland had closed the year with a 2.3% increase, and with the rise to 2.6% in the first quarter of 2025, there is an evident positive trajectory in the nation's economic health.

This newfound momentum is likely ascribed to a combination of domestic and international economic factors, potentially offering a robust base for further growth throughout the year. Economists will be closely monitoring the next quarter to see if this growth can be sustained, providing a hopeful outlook for the Icelandic economy as it looks to stabilize and expand in 2025.