Iceland Mag

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Iceland Mag

Economy

Icelandic economy continues to boom: GDP grew by 10.2% in third quarter of 2016

By Staff

  • A booming economy The Icelandic economy has not grown this fast since 2007, the peak year prior to the meltdown of the Icelandic financial sector in 2008. Photo/Pjetur

GDP grew by a whopping 10.2%, year over year in the 3rd quarter of 2016, according to the latest national accounts figures from Statistics Iceland. The growth in the third quarter of 2016 is the largest quarterly growth registered since the fourth quarter of 2007. Statistics Iceland notes that the growth in real GDP largely reflects positive contribution from net foreign trade, as exports increased by 16.4% compared to the same period in 2015.

Read more: Unemployment only 2.7%, continues to fall, labour participation continues to rise

Growth over the first three quarters of 2016 was also strong. Non-seasonally adjusted Gross Domestic Product (GDP) increased by 6.2% for the first nine months of 2016 compared with the same period of 2015. Total domestic final expenditure increased by 9.3%. Private final consumption increased by 6.7%, government final consumption by 1.1% and gross fixed capital formation by 27.4%. At the same time exports grew by 16.6% and imports grew by 10.0%.

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