Iceland GDP per Capita: Nominal, PPP and Ranking (2026 Data)

In 2025, Iceland's economy produced $98,323¹ for every resident; in the World Bank's 2024 comparison only Norway ranked higher among the Nordic countries. Yet the same country saw its dollar income per person fall by 41%¹ in two years after its banks collapsed in 2008, and its economy still runs on a handful of export earners: foreign visitors, aluminium and fish.

That mix makes the headline number move more than most. In 2025, dollar GDP per person rose by 14.5% while real output per person fell, largely because the krona strengthened. This report uses World Bank, IMF and Statistics Iceland data to show Iceland's GDP per person in nominal and PPP terms, its ranking, the path since 1960, what the economy is made of, and how much the country owes and owns. Dollar figures come first, with krónur (ISK) in brackets at each year's average Central Bank of Iceland exchange rate.

Iceland's GDP per person in 2025

The World Bank's figure for 2025 is $98,323¹ per person in current US dollars, about ISK 12.6 million² at the year's average exchange rate of ISK 128.37 per dollar. That is nominal GDP: the value of everything produced in Iceland, divided by the population and converted at market exchange rates. The IMF, which publishes its own estimates, puts 2025 slightly higher at $99,071³. Statistics Iceland's own series, which ends in 2024, gives $86,473⁴ for 2024, or ISK 11.93 million⁴ per person.

World Bank GDP per capita: Iceland 2024 vs 2025

In the World Bank data, Iceland's GDP per person was $82,201¹ in 2023 and $85,863¹ in 2024 (ISK 11.8 million), before the jump to $98,323 in 2025. The rise of 14.5% did not come from producing much more. Statistics Iceland measures real GDP growth of 1.1%⁵ for 2025 and a change in real GDP per person of -0.3%⁵, as the population grew by about 1.4%. The difference is the exchange rate: a dollar cost ISK 137.93² on average in 2024 and ISK 128.37² in 2025, so the same krónur were worth about 7.4% more dollars.

The long series shows how far and how fast Iceland has climbed. GDP per person was $1,486¹ in 1960, was $15,340¹ in 1980 and reached a pre-crisis peak of $70,483¹ in 2007. It fell to $41,484¹ in 2009 and only passed the 2007 level again in 2017¹. A straight-line trend fitted to 2000–2025 keeps rising towards 2050, but the wide range around it reflects how sharply the dollar figure has swung.

Iceland GNI per capita

Gross national income (GNI) adds income that Icelanders earn abroad and subtracts income paid to foreign owners and lenders. The World Bank's GNI per person, calculated with its Atlas method that smooths exchange-rate swings over three years, was $89,220⁷ in 2025, up from $80,870⁷ in 2023. At purchasing power parity it was $83,250⁷.

Iceland GDP per capita PPP

Purchasing power parity (PPP) converts GDP with a rate that equalises the price of the same basket of goods and services across countries, so a PPP dollar buys as much in Reykjavík as in the United States. On that basis Iceland's GDP per person was $83,431⁶ in 2025, compared with $83,561⁶ in 2024. The IMF's PPP figure for 2025 is $80,662³.

The gap between the two measures is a price gauge. In 2025 nominal GDP per person was about 1.18 times the PPP figure, our calculation from the World Bank data, which means prices in Iceland were roughly 18% above the US-based benchmark. In 2009, after the krona collapsed, the relationship flipped: nominal GDP per person was $41,484¹ and PPP GDP per person $42,070⁶.

Iceland GDP per capita ranking

Compared with 38 economies of the European Union, the rest of Western Europe and the largest OECD members outside Europe, Iceland ranked 6th⁸ for nominal GDP per person in 2024, the latest year with data for all of them. Luxembourg led with $137,782⁸, followed by Ireland, Switzerland, Norway and the United States at $86,170⁸, just above Iceland's $85,863⁸. Among the Nordic countries only Norway, at $89,889⁸, was higher; Denmark had $71,026⁸, Sweden $57,223 and Finland $53,156.

At purchasing power parity Iceland placed 7th⁸ of the same 38 with $83,561⁸. The Netherlands, 8th in nominal terms, moves ahead of Iceland on this measure.

IMF GDP per capita: Iceland 2026 and beyond

The IMF's World Economic Outlook ranks every country it covers. For 2025 it places Iceland 6th³ in the world with $99,071, and for 2026 it forecasts $110,048³, which would lift Iceland to 5th³, behind Liechtenstein, Luxembourg, Ireland and Switzerland and just ahead of Singapore and Norway. The IMF expects total GDP of $43.8 billion³ in 2026 and GDP per person of $125,283³ by 2031. Its PPP forecast is more modest, rising from $82,730 in 2026 to $91,991³ in 2031, because a forecast in current dollars also includes inflation and the assumed exchange rate.

Iceland GDP by year

Iceland total GDP

Iceland's whole economy produced $38.6 billion⁹ of output in 2025, according to the World Bank, or ISK 4.94 trillion¹⁰ in Statistics Iceland's national accounts. That is small in world terms: the total is spread across a population of 391,884⁵ people in 2025. In dollars the economy was worth $22.0 billion⁹ in 2007, shrank to $13.2 billion⁹ in 2009 and has nearly tripled since.

Iceland GDP growth rate

Measured in constant prices, Statistics Iceland's series goes back to 1946. The fastest year was 1953⁵ with growth of 15.4%, and the deepest contraction was 2009, at -8.3%, the year after the banks failed; the World Bank records the same -8.3%⁹. The pandemic year 2020 was the second-worst on record at -6.6%⁵. Recovery was fast: 5.2%⁵ in 2021 and 8.9%⁵ in 2022. Growth then slowed to 5.2% in 2023, turned negative at -0.9%⁵ in 2024 and recovered to 1.1% in 2025.

Statistics Iceland's forecast expects 1.8%¹¹ growth in 2026 and 3.2%¹¹ in 2027, then about 2.4% a year to 2030. The IMF is similar, with 1.9%³ for 2026.

The 2008 crash in numbers

Iceland's banking system collapsed in 2008. That year the current account deficit, the gap between what the country paid abroad and what it earned, reached 23.0% of GDP¹². In the aftermath, inflation hit 12.7%¹² in 2008 and 12.0% in 2009, unemployment rose from 2.9%¹² in 2008 to 7.6%¹² in 2010, and general government spending jumped to 62.8% of GDP¹⁰ in 2008. Government liabilities climbed from 91.6% of GDP¹³ in 2007 to a peak of 167.1%¹³ in 2011.

Why is Iceland GDP per capita so high?

The data point to a few reasons. First, rich natural resources per person: fishing and fish processing together made up 4.7% of GDP¹⁴ in 2025, and aluminium and aluminium products earned ISK 318 billion¹⁵ ($2.5 billion) in exports. Second, tourism: foreign visitors spent ISK 646 billion¹⁵ ($5.0 billion) in 2025, and tourism's direct share of GDP was 8.8%¹⁶. Third, a large share of people work: 223,160¹⁷ people were employed in 2025 out of a population of about 391,884.

Two further factors inflate the dollar figure. Prices are high, so nominal GDP per person is well above the PPP figure, as shown above. And the exchange rate matters: when the krona strengthened in 2025, dollar GDP per person rose by 14.5% even though real GDP per person slipped by 0.3%. Working hours point the other way: the average employed person worked 1,437 hours¹⁷ in 2025, 18% fewer than in 1991, so the high output comes despite shorter working years.

Iceland GDP by industry

Statistics Iceland splits value added by activity. In 2025 real estate was the largest single activity at 12.1% of GDP¹⁴. Manufacturing followed with 9.4%¹⁴, health and social work with 9.4%, wholesale and retail trade with 8.5%¹⁴ and construction with 8.2%. The World Bank's broad split gives services 66.2%¹⁸ of GDP and industry, including construction, 20.1%.

The structure has changed a lot since 1995. Fishing fell from 8.8% of GDP¹⁴ in 1995 to 2.8%¹⁴ in 2025, and manufacturing from 15.0% to 9.4%. Accommodation and food services doubled from 1.9%¹⁴ to 3.9%, and information and communication rose from 4.2% to 5.3%¹⁴.

What is the biggest industry in Iceland?

It depends on the yardstick. By value added, real estate leads, as above. By export earnings, tourism leads: travel revenue of $5.0 billion¹⁵ made up 32.4% of all exports of goods and services in 2025. By jobs, public administration, education and health together employ the most people, 66,538¹⁷ in 2025.

Iceland tourism percentage of GDP

Statistics Iceland's tourism satellite accounts measure tourism's direct contribution to GDP. It rose from 3.4%¹⁶ in 2009 to 8.1%¹⁶ in 2016, collapsed to 2.9%¹⁶ in the pandemic year 2020 and reached a new high of 8.8%¹⁶ in 2025, or ISK 435 billion ($3.4 billion). Tourism's share of hours worked is higher still, 9.5%¹⁶ in 2025, because tourism jobs produce less value per hour than the average.

Exports and trade

Iceland earns a large part of its income abroad: exports of goods and services were 40.1% of GDP¹² in 2025. Their total value was ISK 2.00 trillion¹⁵, or $15.6 billion, up from $8.6 billion in 2013.

Iceland biggest exports

Four groups dominate. Travel revenue from foreign visitors brought in $5.0 billion¹⁵ (32.4%) in 2025. Manufactured goods earned $3.7 billion¹⁵ (23.9%), most of it aluminium at $2.5 billion. Marine products earned $2.8 billion¹⁵ (18.0%). All other goods and services added $4.0 billion.

Fish once made up almost all goods exports: marine products were 89.8%¹⁹ of goods exports in 1950 and 75.5%¹⁹ in 1990. By 2025 the share had fallen to 38.9%¹⁹, while aluminium and aluminium products reached 34.5%. The World Bank classifies 46.9%¹⁸ of merchandise exports as food and 36.2% as ores and metals. Farming plays a small part: what percentage of the land is arable in Iceland? Only 1.2%¹⁸ in 2023.

Iceland biggest trading partners

For goods, the Netherlands is by far the largest buyer: exports there were worth ISK 318 billion²⁰ ($2.5 billion) in 2025, or 34.4% of all goods exports. The United Kingdom ($0.71 billion²⁰) and the United States ($0.67 billion) follow. On the import side China leads with $1.30 billion²⁰ (11.8% of goods imports), ahead of Norway and Germany. Iceland imported $11.0 billion²⁰ of goods in 2025 and exported $7.2 billion, a goods deficit that services, mainly tourism, help to cover.

Jobs, hours and the public sector

Iceland number of employees

Statistics Iceland's labour accounts count 223,160¹⁷ employed people in 2025, holding 257,307¹⁷ jobs, since some people have more than one. That is up from 179,330 people in 2008. Public administration, education and health employ the most, 66,538¹⁷ people or 29.8% of the total, followed by wholesale and retail trade (26,495), manufacturing (21,579) and construction (19,017¹⁷). Accommodation and food services employed 16,027¹⁷, and agriculture, forestry and fishing 6,867.

Iceland average working hours

Dividing total hours worked by the number of employed people, the average person in work put in 1,437 hours¹⁷ in 2025, about 27.6 hours a week spread over a whole year including holidays. In 1991 the figure was 1,748 hours¹⁷ and in 2008 1,625. The trend line keeps falling towards 2050.

Iceland public sector employment percentage

Register data for November show 60,221²¹ people working for the central government, municipalities, government enterprises and other public bodies in 2025, out of 224,331²¹ employed. That puts public sector employment at 26.8%²¹, our calculation from the register. The share peaked at 30.2%²¹ in the pandemic year 2020 and was 27.6% in 2008. Local government institutions employed 31,290²¹ people and central government institutions 23,656²¹.

Prices and unemployment

Inflation rate of Iceland

Consumer price inflation was 4.1%¹² in 2025, down from 8.7%¹² in 2023. Iceland has a long history of high inflation: prices rose by 84.0%¹² in 1983, the peak of the series, and by more than 10% again in 2008 and 2009. Statistics Iceland forecasts 3.5%¹¹ for 2026 and 2.5% a year from 2028.

Unemployment rate of Iceland

The World Bank's modelled ILO estimate was 3.6%¹² in 2025, against a peak of 7.6%¹² in 2010 and 6.0% in the pandemic year 2021. Statistics Iceland's forecast expects 4.3%¹¹ in 2026.

How much debt does Iceland have?

Different measures give different answers. Statistics Iceland's broadest measure, total general government liabilities, was ISK 4.36 trillion¹³ at the end of 2025, about $34.0 billion, or 88.3% of GDP¹³. Subtracting the government's financial assets leaves net liabilities of ISK 1.89 trillion¹³ (38.2% of GDP). The IMF's narrower gross debt measure is 56.1% of GDP³ for 2025, and it expects it to fall to 43%³ by 2031. The World Bank's central government debt figure was 80.1% of GDP in 2023.

The trend is down. Liabilities peaked at 167.1% of GDP in 2011, three years after the crash, and have fallen in most years since, apart from a pandemic rise to 111.9%¹³ in 2020.

Iceland debt per capita

Spread over the 391,884 residents of 2025, general government liabilities come to about ISK 11.1 million¹³ per person, or $86,683. Net of financial assets, the figure is ISK 4.8 million, about $37,569² per person, our calculation.

Iceland public spending as percentage of GDP

General government expenditure, the state and municipalities together, was 45.7% of GDP¹⁰ in 2025, against revenue of 43.0%¹⁰, leaving a deficit of 2.6% of GDP. In 2023 spending was 45.3% of GDP. In krónur, spending came to ISK 2.26 trillion¹⁰ in 2025, or ISK 5.76 million per resident.

Social protection is the largest item at 11.03% of GDP²², followed by health (8.58%), general public services (7.87%) and education (7.03%²²).

How much does Iceland spend on military?

Iceland has no armed forces. NATO describes it as the only member of the alliance without a military: "Iceland, unique among NATO Allies, does not have a military."²³ Instead, the Icelandic Coast Guard and host-nation support for allied forces at Keflavík form its contribution. In the government accounts, the defence function cost ISK 13.1 billion²² in 2025, about $102 million, or 0.27% of GDP²², up from 0.21% in 2024.

Household debt

Households carry debt too. Their total financial liabilities were 77% of GDP²⁴ in 2024, down from a peak of 114%²⁴ in 2009. Against that, households held financial assets worth 289% of GDP.

How much is Iceland worth?

There is no official price for a country, but the national accounts measure what it owns. Iceland's fixed capital stock, its buildings, infrastructure, machinery and other produced assets, was valued at ISK 14.6 trillion²⁵ in 2025, about $114 billion, or 3.0 times that year's GDP. It covers produced assets only, not land or natural resources such as fish stocks.

Financial wealth is on top of that. At the end of 2024 Iceland's pension funds held financial assets equal to 188% of GDP²⁴, about $62 billion. Taken together, the country's domestic sectors, meaning households, companies, banks, pension funds and government, held net financial assets against the rest of the world equal to 54% of GDP²⁴, roughly $18 billion, our calculation. After the 2008 collapse the same measure was -717% of GDP²⁴, the year the banks collapsed. It turned positive in 2017.

What the numbers mean

Iceland's GDP per person is among the highest in the world, but the dollar figure is volatile. It fell by 41% between 2007 and 2009 and rose by 14.5% in 2025 alone, mostly on the exchange rate. For comparisons over time, real growth and the PPP figure are steadier guides: PPP GDP per person barely changed between 2024 and 2025.

The economy also leans on a few earners. Travel, aluminium and fish together earned about 66% of export revenue in 2025, and tourism alone was 8.8% of GDP. In 2020, when tourism's share of GDP dropped to 2.9%, GDP fell by 6.6%. Public finances, by contrast, have recovered from the crash: government liabilities are close to half of their 2011 peak relative to GDP, and the country as a whole is now a net creditor to the rest of the world.

Conclusions

1. Iceland is one of the world's richest countries per person. World Bank data give $98,323 for 2025, and the IMF expects $110,048 in 2026, which would make Iceland 5th in the world.
2. The headline figure depends on the krona. Dollar GDP per person rose 14.5% in 2025 while real GDP per person fell 0.3%; at PPP, Iceland's $83,431 is lower and steadier.
3. Tourism has become the largest export earner. Travel brought in 32.4% of export revenue in 2025, while fish fell from 90% of goods exports in 1950 to 39% in 2025.
4. The 2008 crash left deep but fading marks. Government liabilities peaked at 167.1% of GDP in 2011 and were 88.3% in 2025, and the country's net financial position swung from -717% of GDP in 2008 to +54% in 2024.