The revised annual national accounts for 2014 show a 1.8% increase in Gross Domestic Product (GDP) in real terms. In 2013, GDP increased by 3.9% and by 1.2% in 2012. The economic growth in 2014 is mainly driven by a large increase in the gross domestic final expenditure which increased by 5.2%, the largest increase since year 2006. At the same time a reduced trade balance surplus decreased the GDP growth.

Household final consumption increased by 3.1% and government final consumption by 1.8% while gross fixed capital formation increased by 15.4%. At the same time, exports grew by 3.1% and imports increased by 9.8%. This resulted in a 124.5 billion ISK surplus in the balance of trade in goods and services in 2014 compared to 150.1 billion ISK in 2013.

Despite the decreased surplus in the balance of trade in 2014 and somewhat higher deficit in primary income from abroad, according to figures from the Central bank of Iceland, the current account surplus is still large, 83.5 billion ISK or 4.2% of GDP, compared to current account all time high surplus of 124 billion ISK or 6.6% of GDP in 2013.

During 2014 the terms of trade improved by 1.8% of GDP, having a similar impact on Gross National Income (GNI). This development and the positive current account balance led to 3.0% growth in GNI compared to 11.9% growth in 2013.

 

Gross Domestic Product 2014 - Statistical Series

Statistics