The preliminary annual national accounts for 2016 show a 7.2% increase in Gross Domestic Product (GDP) in real terms. Household final consumption increased by 6.9% and government final consumption by 1.5% while gross fixed capital formation (GFCF) increased by 22.7%. Compared to 2008 GDP has increased by 10%.
Export increased by 11.1% in real terms, while import increased by 14.7% in 2016. Despite a large foreign trade surplus, a higher growth in imports compared to that of exports contributed to a decreased growth in GDP. Service exports amounted to 26.8% of GDP and outweighed the exports of goods for the first time in the history of Icelandic National Accounts dating back to 1945.
GFCF growth measured 22.7% and has not been higher since 2006. A considerable increase of 24.7% was observed in the business sector GFCF, as well as in residential construction of 33.7%, whereas investment growth in public works amounted to 2.5%.
In 2016 government final consumption amounted to 23.1% of GDP, which is a slightly lower share than in previous years. In the years 2010-2015 government final consumption amounted on average to 24.3% of GDP and 23.3% from the year 1996.