Turnover data (excl. agriculture) according to the latest VAT-reports increased in most industries in 20241. Most notable increases were in real estate, technology and construction while turnover grew little or contracted in tourism, export industries and vehicle sales. However, in the last two months of the year some of the trends reversed as turnover increased significantly in metals manufacturing and parts of tourism but contracted in construction and many areas of the technology sector.
Turnover in November-December 2024
Turnover increased in most industries in November and December of 2024 compared with the same months in 2023. In general, the growth was modest and less than inflation (4.8%) in most industries. Turnover increased most in utilities, manufacture of basic metals and real estate. On the other hand, turnover decreased in vehicle sales, information and communications technology, construction, wholesale trade and fisheries.
Turnover in real estate increased considerably in November and December or by 16% to be 31 billion ISK. Most of the increase was due to higher rent revenue from commercial real estate but other areas of real estate also grew markedly. On the contrary, the construction industry contracted by 4% with turnover declining by nearly 3% in construction of buildings, 3% in specialised construction activities and 16% in civil engineering.
Turnover in the tourism industry increased by 7% and totalled 137 billion ISK. Most areas of the industry experienced growth where most notable were 55% increased turnover for physical well-being activities and significant growth in passenger transport. Overall, turnover increased by 31% in passenger transport on sea and inland waters, 12% on land and 10% in air. Furthermore, turnover increased by 5% at travel agencies, 8% in accommodation and 3% in food and beverage activities. However, a decline of 6% was in renting and leasing of motor vehicles.
Turnover in the technology sector amounted to 122 billion ISK and increased by only 2% during the period of November to December 2024. High and medium-high technology manufacturing continued to grow by 16% as manufacturing of medical equipment and products increased significantly. However, other areas of the tech sector contracted with turnover decreasing by 8% in computer related services (15% in computer programming), 16% in information service activities (data processing, hosting, etc.) and 11% in manufacture of computer, electronic and optical products. Significant decline also occurred in pharmaceutical production.
Turnover growth varied considerably in the main export industries. Turnover increased by 18% in manufacture of base metals as the price of aluminium rose during the last two months of 2024 compared with the same period in 2023. However, in fishing, aquaculture and fish processing there was a modest decline which was largely due to a 2% contraction in fisheries (turnover in aquaculture increased by roughly 3%). In total, turnover in fisheries amounted to 87 billion ISK while aquaculture accounted for 15 billion.
Sale of motor vehicles continued to decline by 36% (29% when including repair of motor vehicles). In other trade industries there was little growth and even contraction in wholesale trade as wholesale of fuel decreased by nearly 11% and wholesale of hardware products by 9%. Retail grew by only 2% during November and December where turnover of supermarkets and grocery stores increased by 5% and pharmacies by 21%. However, turnover declined by 6% in hardware stores and remained unchanged in clothing and footwear stores.
Total turnover in 2024
Most industries experienced growth in turnover for the year 2024 as a whole. Of the main industries in the economy only three experienced a drop in turnover; manufacture of basic metals (-1%), fishing, aquaculture and fish processing (-4%) and retail trade and repair of motor vehicles (-21%). Nonetheless, the growth was generally modest and below the year’s inflation (5.9%) in most industries.
Turnover increased most in real estate or by 15% to total 167 billion ISK compared with 145 billion in 2023. Secondly, there was 10% growth in utilities (electricity, gas, steam and air conditioning supply). Turnover in the technology sector increased by roughly 9% which was primarily due to 26% growth in high and medium-high technology manufacturing (mainly pharmaceutical production and manufacturing of medical equipment). Lastly, there was roughly 8% growth in the construction industry.
The tourism industry experienced little growth in 2024 after a stellar year in 2023. Overall, the industry grew by 4% and recorded turnover of 975 billion ISK in 2024 compared with 934 billion in 2023. Most noticeable was little growth in the summer months of 2024 as turnover increased only by 1.5% in July and August and by less than 4% in the months of May to October.
Finally, the year 2024 was marked by contraction in export industries as turnover in metals manufacturing decreased by 1% after having decreased significantly more in the first 10 months of the year as the price of aluminium remained significantly lower than in 2023. Furthermore, contraction in fisheries caused turnover in fishing, aquaculture and fish processing to decline by 4% in 2024. Lastly, turnover in vehicle sales declined by nearly 30% (21% when accounting for repair of motor vehicles).
About the data
Data for turnover according to VAT reports is preliminary. All numbers are in nominal terms unless otherwise specified. Inflation was 4.8% during the period of November-December 2023 to November-December 2024. Inflation for the year 2024 was 5.9%.
Revisions: At the time of our last press release for the period September-October 2024 VAT-turnover was estimated to have been 1,261.8 billion ISK (+6.3%). Following a review with more data available the turnover is estimated to have been 1,266.0 billion ISK (+6.6%).
This publication for November-December 2024 does not include numbers for agriculture during this period and the year 2024, specifically “Crop and animal production, hunting and related service activities” and “Forestry and logging” since data from farmers is generally reported biannually (and included in turnover for May-June and November-December) and filing deadlines happen later than in other industries. Consequently, data for the sum category “Total” is also not included for November-December 2024 and the year 2024 until all numbers have been reported. However, data is published for “Total excluding agriculture and forestry”.
1Many farmers report VAT biannually, in accordance with paragraph 31 of the VAT-laws and have longer reporting deadlines. Data on VAT-turnover in these activities during the second half of 2024 are not yet available.
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