Turnover increased in most industries in January and February of 2025 compared with the same months in 2024. Turnover increased most in manufacture of basic metals, vehicle sales and tourism. However, turnover decreased significantly in the technology sector due to contraction in pharmaceutical production and computer related services. Overall, turnover increased in most industries with the growth generally exceeding the period’s inflation (4.4%).
The tourism industry grew significantly as turnover increased by 10% to total roughly 120 billion ISK. Most areas of the industry experienced growth where most notable were 45% increased turnover for physical well-being activities and 28% growth in passenger transport on land. Turnover also increased by 11% in passenger air transport, 12% in renting and leasing of motor vehicles and nearly 7% at travel agencies (11% in services in connection with trips abroad and 6% in services in connection with trips in Iceland). Roughly 5% growth was in accommodation, 3% in food and beverage activities and nearly 4% in passenger transport on sea and inland waters.
Turnover in real estate amounted to 25 billion ISK in January and February which was a 7% increase year over year. Growth was evenly distributed among the main areas of the industry with rent revenue from commercial real estate always being the primary source of turnover. Contrary to this growth the construction industry experienced no growth with turnover remaining unchanged at 87 billion ISK compared with the same time last year. Approximately 5% growth was in specialised construction activities but that growth was weighed down by 3% contraction in construction of buildings and 6% lower turnover in civil engineering.
Turnover in the technology sector amounted to 94 billion ISK and decreased by 11% during the period of January to February 2025. The decline was mostly due to significantly lower turnover in pharmaceutical manufacturing. Additionally, there was nearly 8% decrease in computer related services, primarily in information service activities (data processing, hosting, etc.). Changes were less significant in other smaller areas of tech. For example, turnover increased by nearly 5% in computer programming, consultancy and related activities but decreased by 9% in manufacture of computer, electronic and optical products.
Turnover continued to grow in manufacture of base metals by 13% as the price of aluminium was significantly higher in January and February of 2025 compared with the same months in 2024. Furthermore, the exchange rate was more favourable and overall quantity exported increased by 9% with subsequent impact on turnover. In other export industries changes were less pronounced with turnover in fishing, aquaculture and fish processing remaining unchanged year over year. Still, there was 7% growth in aquaculture where turnover amounted to 12 billion ISK.
Sale of motor vehicles reversed course from previous months as turnover in wholesale and retail trade and repair of motor vehicles and motorcycles increased by 13% in January and February of which 17% growth came from vehicle sales. In other trade industries there was however little growth as turnover in wholesale trade was unchanged and retail trade grew modestly by 5%. Wholesale trade of fuel decreased by nearly 13% and wholesale of wood and construction materials by 7%. Turnover of supermarkets and grocery stores increased by 6% but the opposite was true of hardware stores and clothing and footwear stores where turnover fell by 6% and 4%, respectively. However, pharmacies were a bright spot with 31% growth in January and February of 2025.
About the data
Data for turnover according to VAT reports is preliminary. All numbers are in nominal terms unless otherwise specified. Inflation was 4.4% during the period of January-February 2024 to January-February 2025.
Revisions: At the time of our last press release for the period November-December 2024 VAT-turnover (excluding agriculture) was estimated to have been 1,268.3 billion ISK (+4.5%). Following a review with more data available the turnover is estimated to have been 1,266.5 billion ISK (+4.4%).
Statistics
All economic activities
The tourism industry