The latest market, economy, central-bank, policy and company stories from Iceland, updated every 15 minutes. Last updated 19 October 2026.
| GDP growth (2025) | 1.3% | Slow growth. |
| Inflation (2025) | 4.1% | Above the usual central-bank targets. |
| Unemployment (2025) | 3.6% | Low: the job market is tight. |
| GDP per person (2025) | $98,323 | Average output per person: a rough measure of how wealthy a country is. |
| Current account (2025) | -3.5% of GDP | Deficit: spends more abroad than it earns, so it relies on foreign money. |
| Exports (2025) | 40.1% of GDP | An open, trading economy. |
Latest official annual figures from World Bank Open Data (CC BY 4.0). Context, not a forecast or financial advice.
Kópavogur municipality intends to seek full compensation for breaches of contract by the construction company responsible for building Barnaskóli Kársness (Kársnes Children's School). The claim amounts to ISK 3.9 billion.
Hagar hf. performed better than expected in the second quarter and has raised its earnings forecast for the 2026-2027 financial year by ISK 800 million. This was announced in the company's second-quarter financial results, published yesterday. Bónus, Hagkaup and Olís are among Hagar's main businesses.
Landsbankinn's research department forecasts that annual inflation will be 5.9% in October. Rising fuel prices and a new appointment fee for physiotherapy, speech therapy and occupational therapy are contributing to inflation, according to the department.
The maximum term of new inflation-indexed mortgages would be reduced from 40 years to 25 under proposals from Fjármála- og efnahagsráðuneytið (the Ministry of Finance and Economic Affairs), published on the government's consultation portal.
The president of ASÍ says he is speechless over comments by the Deputy Governor for Monetary Policy that the Central Bank had created slack in the economy, with the resulting unemployment, to ensure that collective agreements remained in force. Þórarinn G.
The nuclear threat is greater than at any time since the height of the Cold War, according to Izumi Nakamitsu, United Nations High Representative for Disarmament Affairs. She says the world is entering a new arms race and warns that the lack of dialogue between the major powers could have serious consequences.
There was a packed house at Saturday's meeting of the governing council of Samfylkingin (Social Democratic Alliance). The party leader and Prime Minister delivered a speech entitled Styrk hönd á stýri (A Steady Hand at the Helm).
Fangelsismálastofnun (the Prison and Probation Administration) has asked Alþingi's Budget Committee to increase its funding for next year by 280 million krónur above the amount proposed in the budget bill.
Erik Brynjolfsson is one of the best-known economists in the United States when it comes to assessing the economic and social impact of artificial intelligence on the labour market. He is a professor at Stanford University and heads research institutions specialising in the economic effects of AI and its adoption.
Central Bank Governor Ásgeir Jónsson says his comments about the government's rent protection bill were taken out of context to some extent. Ásgeir said yesterday morning that the bill was "obviously very stupid", but told RÚV later that the Central Bank had not in fact been asked to provide an opinion on the proposed…
The key interest rate is unchanged after being raised on the previous three consecutive occasions when the Central Bank's Monetary Policy Committee announced an interest-rate decision. The Central Bank's Monetary Policy Committee decided that the key interest rate would remain at 8.00%.
Member unions of Alþýðusamband Íslands (Icelandic Confederation of Labour) made unpaid and underpaid wage claims totalling ISK 1.4 billion last year over wages owed to their members. This is revealed in a new ASÍ report on labour market violations.
Economy in the dumps The so-called gúrkutíð, or silly season, is over and now we can start focusing on the truly depressing stuff: the economy. Recently Iceland has been bombarded with a flurry of grim economic news, and the Central Bank says there are clear signs of a cooling economy. Some headline figures are so…
Bjarni Benediktsson, managing director of the Confederation of Icelandic Enterprise, says there is an urgent need to find a solution on wages before the deadline for terminating the collective agreements expires in one week's time.
Lawyers are not required to provide tax authorities with information about clients who have received tax advice if the request goes beyond what is strictly necessary and proportionate, states a ruling reached yesterday by EFTA-dómstóllinn (the EFTA Court).
A Twitch Star Disrupts Idyllic Reykjavík Some dude from New York, a 25-year-old called Kai Cenat, who apparently has millions of followers on something called Twitch, disrupted life in downtown Reykjavík this weekend when he was livestreaming his visit there.
For most of its history, Iceland’s food delivery system was a pizza place and a cousin with a car. Then, in May 2023, a Finnish company in a very particular shade of blue arrived and announced that KFC could come to your door, and I have been part of the problem ever since. Wolt had…
On Wednesday, 23 September, the Icelandic Aircraft Mechanics Association (FVFÍ) began a strike, which disrupted Icelandair’s flight schedule significantly, affecting 26 flights and 5,500 passengers.