Turnover increased in most of the main industries in Iceland in November and December of 2025 compared with the same months in 2024. Still, growth varied considerably as turnover often increased by less than inflation (4.1%). Turnover increased most in information technology where significant growth was in data centres. Vehicle sales also experienced high growth during the period. On the other hand, contraction was in manufacture of base metals and tourism.
Turnover in the technology sector (excl. pharmaceutical production) amounted to nearly 154 billion ISK and increased by 34% during the period of November to December 2025. Considerable growth was in information technology where the greatest proportional increase was in information service activities (data processing, hosting, etc.) or nearly 131%. In service activities related to information technology there was also 76% increase in turnover, but both industries are related to data centres. Little changes were in other high and medium-high technology manufacturing (2%) and in computer programming there was a decrease of 12%.
Turnover in the tourism industry fell by nearly 7% where most of the industry’s areas experienced declines, although physical well-being activities was a bright spot with 56% growth. Turnover in passenger transport by air declined by nearly 16% and by roughly 11% at travel agencies (thereof nearly 25% in services in connection with trips abroad and 7% in services in connection with trips in Iceland). In accommodation there was a 7% decline as overnight stays decreased during the months. Furthermore, turnover declined by nearly 2% in food and beverage activities and 1% in passenger transport by land but increased by 7% in passenger transport by sea.
Turnover growth in wholesale and retail trade was generally in line with inflation. In wholesale trade there was nearly 5% growth as wholesale trade of fuel fell by 9% while wholesale trade of timber and other construction materials grew by around 20%. Turnover in retail trade also increased by roughly 4% with approximately 8% growth occurring in supermarkets and grocery stores and nearly 23% increased turnover at pharmacies. Contraction was however in hardware stores (-3%) and clothing and footwear stores (-5%). Considerably more growth was in wholesale and retail trade and repair of motor vehicles as turnover increased by 42%, with nearly 57% growth in sale of motor vehicles.
Turnover in real estate was nearly unchanged in November and December and increased by 1% which was primarily due to rent revenue from commercial real estate. However, in the construction industry turnover growth was significantly higher or roughly 11% with turnover amounting to 135 billion ISK. Thereof, turnover in specialised construction rose by 12% while construction of buildings grew by 8% and civil engineering by 45%, although the last one is generally small compared to the other two. Turnover in the other main export industries, fisheries and metals manufacturing, decreased in November and December. In manufacturing of base metals there was 19% contraction as lower quantity exported (-22%) and strength in the local currency weighed against higher market prices. In fishing, aquaculture and fish processing overall turnover was unchanged as fisheries increased by nearly 3% and aquaculture declined by 12%.
Annual data for 2025
Along with the publication of new data for November to December 2025 Statistics Iceland has updated the annual tables for VAT turnover with total numbers for the year 2025. Noticeable results include 1% year-over-year turnover growth in tourism, 10% increase in the technology sector (excl. pharmaceutical production), 4% growth in construction, 2% in fishing, aquaculture and fish processing, 28% in vehicle sales, 6% in retail trade, 6% in real estate and 3% in wholesale trade.
About the data
Data for turnover according to VAT reports is preliminary. All numbers are in nominal terms unless otherwise specified. Inflation was 4.1% during the period of November-December 2024 to November-December 2025.
Due to undergoing analysis of data for the industry manufacture of basic pharmaceutical products and pharmaceutical preparations it is not possible to release numbers for that industry. Furthermore, data for high and medium high technology manufacturing (and knowledge intensive high technology services) and high and medium-high technology manufacturing along with total numbers (total and total excluding agriculture and forestry) excludes turnover from the pharmaceutical industry. This applies to data going back to 2008.
This publication for November-December 2025 does not include numbers for agriculture during this period and the year 2025, 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 2025 and the year 2025 until all numbers have been reported. However, data is published for “Total excluding agriculture and forestry”.
Revisions: At the time of our last press release for the period September-October 2025 VAT-turnover was estimated to have been 1,314.1 billion ISK (+4.7%). Following a review with more data available the turnover is estimated to have been 1,320.4 billion ISK (+5.1%).