FX.co ★ Iceland Trade Deficit Narrows Sharply in February

Iceland’s trade deficit narrowed significantly to ISK 9.9 billion in February 2026, down from ISK 59.5 billion in the same month a year earlier. Exports increased by 2% year-on-year to ISK 78 billion, supported by higher shipments of marine products (up 13.1%) and agricultural goods (up 3.3%). At the same time, imports dropped by 35.2% to ISK 88 billion, reflecting substantial declines in capital goods excluding transport (-65.6%), transport equipment (-30.6%), and fuels and lubricants (-26.9%).