The revised annual national accounts for 2012 show a 1.4% increase in Gross Domestic Product (GDP) in real terms. In 2011, GDP increased by 2.7% but decreased by 4.1% in 2010.
In 2012 domestic expenditure increased by 1.6%. Household final consumption increased by 2.4% and gross fixed capital formation by 5% while government final consumption decreased by 1.4%. At the same time, exports grew by 3.8% and imports by 4.7%. This resulted in a surplus in the balance on goods and services of 104 billion ISK in 2012 compared with 136 billion ISK in 2011.
The growth in gross fixed capital formation is mostly due to imports of ships and aircraft, that only have a marginal impact on GDP. Excluding ships and aircraft, gross fixed capital formation decreased by 4.1% in 2012.