Prices & public finance · Europe & Central Asia · High income
Iceland: prices, money and public finance
Inflation is 4.1% (2025), 53rd of 180 in the world and 14th of 49 in Europe & Central Asia. GDP deflator is 6.9% (2025), 40th of 209 in the world and 10th of 56 in Europe & Central Asia. Lending rate is 11.0% (2025), 50th of 136 in the world and 9th of 24 in Europe & Central Asia.
Inflation
IcelandEurope & Central AsiaHigh incomeWorld
GDP deflator
IcelandEurope & Central AsiaHigh incomeWorld
13 indicators
Prices & public finance: Iceland in detail
Latest reported value, world rank and rank within Europe & Central Asia; values around 2000, 2010, 2020; group and world columns are World Bank aggregates.
| Indicator | Latest | World rank | In region | ~2000 | ~2010 | ~2020 | 10-year change | Region | Income group | World | Since 2000 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| InflationInflation, consumer prices, annual % | 4.1%2025 | 53/180 | 14/49 | 5.1% | 5.4% | 2.8% | +2.5 ppsince 2015 | 3.7% | 2.3% | 3.0% | |
| GDP deflatorInflation, GDP deflator, annual % | 6.9%2025 | 40/209 | 10/56 | 4.0% | 6.6% | 4.3% | +0.1 ppsince 2015 | 3.6% | 2.6% | 3.3% | |
| Lending rateLending interest rate, % | 11.0%2025 | 50/136 | 9/24 | 16.8% | 10.3% | 5.8% | +3.4 ppsince 2015 | — | — | — | |
| Real interest rateReal interest rate, % | 3.9%2025 | 84/136 | 12/24 | 12.3% | 3.5% | 1.4% | +3.1 ppsince 2015 | — | — | — | |
| Exchange rateOfficial exchange rate, local currency per US$ | 128.442025 | 60/210 | 5/57 | 78.62 | 122.24 | 135.42 | −2.6%since 2015 | — | — | — | |
| Tax revenueTax revenue, % of GDP | 23.2%2023 | 27/142 | 14/48 | 24.8% | 20.0% | 22.0% | +1.7 ppsince 2013 | 19.7% | 15.3% | 13.9% | |
| Government revenueGovernment revenue excluding grants, % of GDP | 31.4%2023 | 42/142 | 31/48 | 31.7% | 31.5% | 28.9% | −2.0 ppsince 2013 | 34.7% | 26.3% | 24.0% | |
| Government expenseGovernment expense, % of GDP | 32.0%2023 | 50/142 | 34/47 | 29.0% | 37.5% | 36.4% | −2.4 ppsince 2013 | 38.9% | 30.1% | 28.5% | |
| Government debtCentral government debt, % of GDP | 80.1%2023 | 16/78 | 5/19 | 57.5% | 148.8% | 98.5% | −59.8 ppsince 2013 | — | — | — | |
| Private creditDomestic credit to private sector, % of GDP | 88.6%2025 | 26/169 | 8/48 | 92.4% | 157.6% | 98.4% | +2.3 ppsince 2015 | 82.1% | 152.1% | 140.3% | |
| Broad moneyBroad money, % of GDP | 67.4%2024 | 61/146 | 9/28 | 41.5% | 85.9% | 70.8% | −10.0 ppsince 2014 | — | 138.4% | 135.7% | |
| Reserves, months of importsTotal reserves in months of imports | 5.32025 | 64/165 | 16/49 | 1.2 | 8.2 | 10.0 | −24%since 2015 | 6.3 | 7.9 | 8.6 | |
| Military spendingMilitary expenditure, % of GDP | 0.00%2025 | 155/156 | 47/47 | 0.00% | 0.00% | 0.00% | ±0.0 ppsince 2015 | 2.83% | 2.80% | 2.48% |
Source: World Bank, World Development Indicators (CC BY 4.0)“·” — no value reported within two years of that date. World rank counts countries with a recent value.
Better than ten years ago
- Government debt−59.8 pp80.1% in 2023
Worse than ten years ago
- Inflation+2.5 pp4.1% in 2025
- Reserves, months of imports−24%5.3 in 2025
Only indicators where higher or lower is clearly better are rated (for example, unemployment down is better, life expectancy up is better).
neighbours
Iceland and its neighbours
Countries sharing a land border with Iceland. Latest values since 2005; the highest in each row is marked.
| Indicator | Iceland | Greenland | Faroe Islands |
|---|---|---|---|
| Inflation | 4.1%2025 | — | — |
| GDP deflator | 6.9%2025 | 1.9%2023 | 2.0%2024 |
| Lending rate | 11.0%2025 | — | — |
| Real interest rate | 3.9%2025 | — | — |
| Exchange rate | 128.442025 | 6.622025 | 6.622025 |
| Tax revenue | 23.2%2023 | — | — |
| Government revenue | 31.4%2023 | — | — |
| Government expense | 32.0%2023 | — | — |
| Government debt | 80.1%2023 | — | — |