Total Trade (2024)
$4.7 billion
US goods and services trade with Iceland, a 41.6% increase from 2023.
US-Iceland Trade and Economy
The United States remains one of Iceland's most important trading partners, with total trade reaching $4.7 billion in 2024.
Updated March 4, 2026By the Iceland.org Travel Team
Embassy Resources
US-Iceland Relations
Economic partnership spanning trade, energy, and innovation.
The United States is Iceland's largest single-country trading partner. In 2024, total US goods and services trade with Iceland reached an estimated $4.7 billion, a 41.6 percent increase from 2023. US goods exports to Iceland totaled $990.9 million, while US goods imports from Iceland reached $1.1 billion.
On the services side, trade between the two countries totaled $2.6 billion, with Icelandic service exports to the United States accounting for $1.8 billion. US investment in Iceland has historically been concentrated in the aluminum sector, and the two nations signed a Trade and Investment Framework Agreement in 2009.
In early 2024, the United States and Iceland launched the US-Iceland Energy and Climate Partnership to spur cooperation in geothermal energy, carbon management, and hydrogen development.
Safety + sourcing
Last updated: 2026-03-04
Data sourced from official US and Icelandic government statistics, OECD, and WTO Trade Policy Reviews.
GDP Per Capita
Top 10 globally
Iceland topped the UN Human Development Index in 2025 with ~$35B nominal GDP.
Renewable Energy
100%
All electricity from renewable sources: ~70% hydropower, ~30% geothermal.
The Icelandic Economy Today
Iceland enjoys one of the highest standards of living in the world. With a population of roughly 390,000, the country's nominal GDP stood at approximately $35 billion in 2025, with a GDP per capita among the highest globally. Iceland topped the United Nations Human Development Index in 2025 and consistently ranks among the most egalitarian nations in the OECD.
The economy experienced a slowdown in 2024, with real GDP declining by 0.7 percent amid high interest rates, a weak fishing season, and a temporary dip in tourism partly related to seismic activity on the Reykjanes Peninsula. However, growth is projected to recover, with the OECD forecasting a 2.7 percent expansion in 2025 and 3.0 percent in 2026.
Iceland's business environment remains highly competitive. The country offers a well-educated, highly skilled labor force — with over 40 percent of the working-age population holding at least a university degree — along with a transparent regulatory framework, strong rule of law, and competitive energy costs. The unemployment rate held around 3.5 percent in 2024.
Key Economic Sectors
Fisheries & Ocean Cluster
Marine products account for roughly 40 percent of merchandise export earnings. The fishing industry has spawned a broader ocean cluster of technology companies manufacturing equipment and developing marine biotech products.
~40%
of merchandise exports
Aluminum & Power-Intensive Industry
Three smelters operate with a combined capacity exceeding 850,000 metric tons per year, placing Iceland among the top dozen aluminum-producing nations. Power-intensive products account for roughly 21 percent of merchandise exports.
850K+
metric tons/year capacity
Tourism
After dramatic contraction during COVID-19, the sector has fully recovered. Just under 2.3 million tourists visited Iceland in 2024, with similar numbers projected for 2025. Tourism now rivals fishing in economic significance.
2.3M
visitors in 2024
Renewable Energy & Data Centers
Iceland generates virtually 100 percent of its electricity from renewable sources. The data center market was valued at $425 million in 2024 and is expected to nearly double by 2030, attracted by clean power and naturally cool temperatures.
100%
renewable electricity
Technology & Innovation
The information technology sector spans the full digital economy. Biotech, pharmaceutical, wellness, and aquaculture industries are growing rapidly. Companies like Ossur (prosthetics) and Marel (food processing technology) have built global reputations.
Top 10
OECD R&D growth
Data Centers & AI
The combination of renewable power, naturally cool temperatures, strong submarine cable connectivity, and a favorable regulatory environment has positioned Iceland as one of the most attractive locations globally for sustainable data operations.
$425M
market value in 2024
Direction of Trade
- The EU remains Iceland's largest market area via the EEA agreement
- Netherlands: top export destination (~36% of exports by value in 2023)
- United States: ~10% of exports, ~8% of imports
- United Kingdom: ~9% of exports
- Norway: leading import supplier (~12% of imports)
- China: growing partner since the 2014 bilateral free trade agreement
- ~82% of merchandise exports go to Europe, ~10% to North America, ~5% to Asia
- Iceland runs a trade surplus with Japan in certain years (seafood and ferrosilicon)
Trade Policy & Agreements
- EFTA member since 1970; EEA participant since 1994
- EU membership application (2009) effectively withdrawn in 2015
- Free trade agreements via EFTA with UK, Canada, Chile, South Korea, Singapore, and more
- Notable bilateral FTA with China
- Bilateral investment treaties with Egypt, Mexico, Vietnam, and China
- Trade and Investment Framework Agreement with the US (2009)
- Sixth WTO Trade Policy Review completed in 2024
- US-Iceland Energy and Climate Partnership launched in 2024
Imports
- Iceland is heavily dependent on imports for energy fuels, vehicles, machinery, and foodstuffs
- Mineral fuels: largest import category (~13% of total merchandise imports)
- Vehicles, electrical machinery, and industrial equipment follow
- Import content of fixed investment remains around 40%
- Norway is the primary supplier of petroleum products
- Wheat, timber, and many foodstuffs cannot be produced domestically
Trade in Services
Services trade is a critical component of Iceland's external economy. Service exports — driven by tourism, transportation, and increasingly by technology and financial services — account for a substantial share of total export revenues.
In 2023, Iceland's service exports reached approximately $7.2 billion, well exceeding the $4.8 billion in service imports.
$7.2B
service exports in 2023
Doing Business in Iceland
Iceland offers a compelling environment for international business. Key advantages include:
- Fully renewable energy at competitive prices
- Highly educated and multilingual workforce (40%+ hold university degrees)
- Strong digital infrastructure
- Transparent legal system and strong rule of law
- Membership in the European Economic Area
- Strategic geographic position bridging Europe and North America
- Carbon neutral target by 2040
For more information on conducting business in Iceland or on the Icelandic economy, please contact the Embassy.
References: US Trade Representative; US Department of State, 2025 Investment Climate Statements; OECD Economic Surveys: Iceland 2025; Statistics Iceland; World Bank; WTO Trade Policy Review: Iceland 2024; Business Iceland (Islandsstofa).
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