Iceland imported around ISK 41 billion more in goods than it exported in July, according to preliminary figures from Statistics Iceland.
Despite the sizeable gap, the trade balance improved compared with the same month last year. Iceland exported goods worth ISK 86.5 billion in July and imported goods worth ISK 127.1 billion, producing a deficit of ISK 40.6 billion.
What’s the Story?
- Iceland recorded a goods trade deficit of ISK 40.6 billion in July.
- Exports jumped 19% year-on-year, driven particularly by increased aluminium exports.
- Despite the sizeable deficit, the trade balance was ISK 3.5 billion better than in July last year.
More Coming In Than Going Out
Iceland’s goods exports increased from ISK 72.5 billion in July 2025 to ISK 86.5 billion this July, an increase of ISK 14 billion, or 19%.
Statistics Iceland attributed much of the increase to manufactured goods, particularly aluminium.
Imports also increased, rising 9% year-on-year from ISK 116.5 billion to ISK 127.1 billion. Increased imports of capital goods accounted for much of the rise.
The result was a deficit of ISK 40.6 billion, compared with ISK 44 billion in July last year.
The longer-term picture is also more favourable. Iceland’s goods trade deficit totalled ISK 441.9 billion over the latest 12 months, an improvement of ISK 63 billion compared with the preceding 12-month period. Imports fell 5% over that period, while the total value of exports remained broadly unchanged.
Seafood continues to play an outsized role in Iceland’s export economy. Marine products accounted for 40% of goods exports over the latest 12 months, and their value increased by 8%. Manufactured products accounted for 49%.
Those exports are exposed to changing conditions in some of Iceland’s largest overseas markets. A 15% tariff on Icelandic goods entering the United States came into force last year, affecting products including Icelandic seafood.
The effects have been particularly important for some exporters. Icelandic salmon producers warned that the US tariffs could increase prices and affect demand, with the United States an important market for the industry.
The July trade figures are preliminary.
Source: Statistics Iceland
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