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Iceland Mag

Economy

Icelandic economic boom continues: GDP grew by 11.3% in fourth quarter of 2016

By Staff

  • Booming economy Investment was a major driver of growth in Q4 2016. Residential construction increased by 70.9% year over year. Photo/Andri Marínó

The quarterly national accounts published by Statistics Iceland show that the Icelandic economy continued to boom in the last quarter of 2016. The real GDP of Iceland increased by 11.3% year-over-year, according to the non-seasonally adjusted figures. This is the highest increase ever recorded since the fourth quarter, 2007.

Read more:Report: Icelandic economic growth tops all but one OECD country in 2016: GDP grew 7.2%

The primary drivers of economic growth in 2015 and 2016 have been private investment and exports, as well as private consumption. Total domestic expenditure increased by 8.4%. Household final consumption increased by 7.2%, government final consumption by 1.7% and gross fixed capital formation by 18.6%, led by a 70.9% increase in residential construction. At the same time ex­ports grew by 14% and imports by 8.8%. 

The unemployment rate in January was 4.1%, and inflation 1.9%. 

 

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