FX.co ★ Iceland Trade Gap Widens to 4-Month High

Iceland’s trade deficit widened to ISK 63.1 billion in August 2026, up from ISK 33.6 billion in the same month a year earlier, marking the largest gap in four months. Imports jumped 35% year-on-year to ISK 135.5 billion, mainly reflecting stronger purchases of fuels and lubricants (+74%), transport equipment (+63%), industrial supplies (+31%), consumer goods (+7%), and food and beverages (+5%).

Exports increased more modestly, rising 8% to ISK 72.4 billion. The overall gain was supported by higher shipments of farmed fish (+52%) and manufactured products (+33%), which more than offset sharp declines in agricultural products (-53%), marine products (-14%), and other products (-75%).

Over the past twelve months, Iceland’s cumulative trade deficit reached ISK 470.0 billion, narrowing from ISK 501.6 billion in the preceding twelve-month period. Exports were flat at ISK 954.8 billion, while imports fell 2% to ISK 1,424.8 billion.