Country profile
Iceland
Europe & Central Asia · High income · Capital: Reykjavik
Key figures, 2025
FDI inflows 2025
−$202 m
Inflows % of GDP
−0.5%
FDI outflows
−$852 m
Net FDI
$650 m
FDI % of investment
−2.0%
In 2025, Iceland recorded FDI net inflows of −$202 m, compared with $2.8 bn in 2024. Its 2020–2024 average was $1.1 bn. By value, that ranks 86th of 97 economies with data for 2025. Inflows peaked at $6.9 bn in 2007 (data begin in 1970). A negative figure means that disinvestment and repayments of intra-company loans by foreign investors exceeded new investment during the year. Inflows were equivalent to −0.5% of GDP in 2025 — below the Europe & Central Asia aggregate (0.6%) and below the world as a whole (1.3%).
About this summary
Generated automatically from World Bank data. Figures are balance-of-payments net flows in current US$; 2025 is the latest year with broad coverage across economies.Trends
FDI flows over time
Net flows, current US$ (balance-of-payments basis)
- Inflows
- Outflows
Source: World Bank, World Development Indicators (CC BY 4.0). Indicators BX.KLT.DINV.CD.WD and BM.KLT.DINV.CD.WD.
Iceland compared with its region and the world
- Iceland
- Europe & Central Asia (aggregate)
- World
Source: World Bank, World Development Indicators (CC BY 4.0). Indicator BX.KLT.DINV.WD.GD.ZS.
FDI vs remittances, aid and portfolio equity, current US$
- FDI inflows
- Remittances
- Portfolio equity
FDI is only one of the ways foreign money reaches an economy. For many developing economies, remittances from workers abroad or official aid are larger and more stable; portfolio equity is typically the most volatile.
Source: World Bank, World Development Indicators (CC BY 4.0). Indicators BX.KLT.DINV.CD.WD, BX.TRF.PWKR.CD.DT, DT.ODA.ODAT.CD, BX.PEF.TOTL.CD.WD.
Economy at a glance
The economy behind the investment
The macroeconomic, trade and workforce indicators investors and trade officials look at alongside FDI — latest year, 15-year trend and regional and world benchmarks.
| IMF World Economic Outlook | 2024 | 2025 | 2026forecast | 2027forecast | 2028forecast |
|---|---|---|---|---|---|
| Real GDP growth | −1.3% | 1.3% | 1.9% | 2.1% | 2.4% |
| Inflation | 5.9% | 4.1% | 4.8% | 2.8% | 2.5% |
| Unemployment rate | 3.4% | 4.4% | 4.2% | 4.3% | 4.0% |
| Current account, % GDP | −3.2% | −3.6% | −0.7% | −0.1% | 0.1% |
| Fiscal balance, % GDP | −3.7% | −2.8% | −1.1% | −0.5% | −0.2% |
| Government gross debt, % GDP | 60.4% | 56.1% | 53.6% | 51.7% | 49.9% |
Source: IMF World Economic Outlook via the IMF DataMapper API. Years from 2026 are IMF projections; recent years may be estimates and are revised in each WEO round (April and October).
Size & growth
GDP
$38.6 bn2025
105th of 186
GDP per capita
$98,3232025
5th of 186Region $34,603World $14,406
GNI per capita (PPP)
$83,2502025
12th of 181Region $53,745World $25,517
Population
392 k2025
176th of 217
Population growth
1.5%2025
71st of 217Region 0.4%World 0.9%
Trade & structure
Exports of goods & services
$15.5 bn2025
85th of 138
Imports of goods & services
$16.3 bn2025
88th of 138
Trade openness (% of GDP)
82.5%2025
67th of 138Region 81.8%World 68.5%
Manufacturing, % of GDP
8.5%2025
89th of 132Region 13.5%World 14.9%
Services, % of GDP
66.2%2025
27th of 158Region 65.5%World 63.3%
High-tech exports, % of manufactured exports
54.0%2024
7th of 125Region 21.4%World 24.7%
Workforce & innovation
Labour force
243 k2025
167th of 182
R&D expenditure, % of GDP
2.6%2023
14th of 84Region 2.1%World 2.6%
Internet users, % of population
98.2%2024
10th of 182Region 90.9%World 71.2%
Source: World Bank, World Development Indicators. Latest available year shown for each indicator; ranks are among economies reporting that year (highest = 1st). Region = World Bank regional aggregate. Growth, inflation, unemployment, the current account and government debt are shown in the IMF table above where the IMF covers the economy.
Who invests
Source and destination economies
Direct investment positions (stocks) by immediate counterpart economy, as reported to the OECD.
No bilateral positions for this economy
Structure & policy
Sectors and FDI openness
Inward FDI positions by sector
No sector breakdown
FDI Regulatory Restrictiveness
IndexNot covered by the index
Peers
Similar-sized economies in Europe & Central Asia
The six economies in the same World Bank region with the closest GDP, ranked by FDI inflows as a share of GDP (2024).
Sources & notes
World Bank, World Development Indicators
- FDI net inflows —
BX.KLT.DINV.CD.WD - FDI net outflows —
BM.KLT.DINV.CD.WD - FDI net inflows, % of GDP —
BX.KLT.DINV.WD.GD.ZS - Gross fixed capital formation —
NE.GDI.FTOT.CD - Personal remittances received —
BX.TRF.PWKR.CD.DT - Net official development assistance received —
DT.ODA.ODAT.CD - Portfolio equity net inflows —
BX.PEF.TOTL.CD.WD - Real GDP growth —
NY.GDP.MKTP.KD.ZG - Inflation (annual average) —
FP.CPI.TOTL.ZG - Unemployment rate —
SL.UEM.TOTL.ZS - Current account balance, % of GDP —
BN.CAB.XOKA.GD.ZS - Exports of goods & services —
NE.EXP.GNFS.CD - Central government debt, % of GDP —
GC.DOD.TOTL.GD.ZS
OECD: FDI statistics by partner economy and by industry (Benchmark Definition, 4th edition) and the FDI Regulatory Restrictiveness Index.
Flows vs positions. Charts on this page show annual balance-of-payments flows. Bilateral and sector figures are positions (accumulated stocks) and are not directly comparable.
Negative values. Net flows can be negative when foreign investors withdraw capital or intra-company loans are repaid faster than new investment arrives.
Timing. Headline figures use 2025, the latest year with broad coverage across economies; charts also show any newer early estimates. Rankings cover economies only, not aggregates.
Counterparts. Bilateral data record the immediate counterpart, so financial centres and conduit economies can appear larger than the ultimate investors behind them.