The Icelandic economy continues to boom, the latest quarterly national accounts from Statistics Iceland (pdf) reveal. The year over year increase in real Gross Domestic Product (GDP) between the second quarter of 2017 and the second quarter of 2018 was 7.2%. In real terms, GDP for the first two quarters of 2018 increased by 6.4% compared with the same period of 2017.
Double the growth of the US
Taking into consideration the strong seasonal fluctuations in the Icelandic economy, the seasonally adjusted real growth in the second quarter of 2018 was 6.8%, compares very favorably with other economies. The corresponding figures for the US were 2.9%, 3.3% for Sweden and 1.9% in Germany. The robust growth is also an indication that the economic upswing, which began when the growth of tourism helped Iceland exit the recession caused by the 2008 financial crash, will continue for a few more years.
Statistics Iceland reports that the growth was fueled by investments and private consumption. Total domestic expenditure increased by 6.6%. Household final consumption increased by 5.1%, government final consumption by 2.8% and gross fixed capital formation by 7.5%.
External trade also contributed to the growth, ahs exports grew by 0.8% during the period, while imports declined by 0.4%.
Read more: Icelanders fifth most prosperous European nation, GDP is 30% above European average
The Icelandic economy continues to boom, the latest quarterly national accounts from Statistics Iceland (pdf) reveal. The year over year increase in real Gross Domestic Product (GDP) between the second quarter of 2017 and the second quarter of 2018 was 7.2%. In real terms, GDP for the first two quarters of 2018 increased by 6.4% compared with the same period of 2017.
Double the growth of the US
Taking into consideration the strong seasonal fluctuations in the Icelandic economy, the seasonally adjusted real growth in the second quarter of 2018 was 6.8%, compares very favorably with other economies. The corresponding figures for the US were 2.9%, 3.3% for Sweden and 1.9% in Germany. The robust growth is also an indication that the economic upswing, which began when the growth of tourism helped Iceland exit the recession caused by the 2008 financial crash, will continue for a few more years.
Statistics Iceland reports that the growth was fueled by investments and private consumption. Total domestic expenditure increased by 6.6%. Household final consumption increased by 5.1%, government final consumption by 2.8% and gross fixed capital formation by 7.5%.
External trade also contributed to the growth, ahs exports grew by 0.8% during the period, while imports declined by 0.4%.
Read more: Icelanders fifth most prosperous European nation, GDP is 30% above European average
