Italy and Iceland
Italy and Iceland channel relations through Italy’s Oslo embassy and honorary representation in Reykjavík. Cooperation combines international coordination, business support and Italian language and cultural promotion alongside educational and scientific contacts.
Analysis reviewed: 2026-10-08 · Indicators updated: 2026-10-08Bilateral context
Italy’s Oslo embassy is also accredited to Iceland, which has an honorary Italian consulate general in Reykjavík under its jurisdiction.
What merchandise trade shows
In 2025, goods trade between Italy and Iceland totalled 183.6 million current USD.
Documented trade sectors
Within the selected chapters, machinery and mechanical appliances stands out in shipments from Italy to Iceland, at 37.3 million USD in 2025.
Bilateral indicators
Blank cells: data unavailable.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | 183.6 M USD | 2025 · Comtrade |
| Goods: Italy to Iceland | 152.48 M USD | 2025 · Comtrade |
| Goods: Iceland to Italy | 31.12 M USD | 2025 · Comtrade |
| Services trade | ||
| Export share: Italy to Iceland | 0.021 % | 2025 · Comtrade |
| Export share: Iceland to Italy | ||
| Investment stock: Italy in Iceland | ||
| Investment stock: Iceland in Italy |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
- Goods trade
- 2025 · UN Comtrade · Goods; full calendar year; reporter ITA. Exports normally FOB and imports CIF; no addition of mirror declarations. Both directions are identified from the same customs authority.
- Goods: Italy to Iceland
- 2025 · UN Comtrade · Goods; full calendar year; reporter ITA. Exports normally FOB and imports CIF; no addition of mirror declarations. Both directions are identified from the same customs authority.
- Goods: Iceland to Italy
- 2025 · UN Comtrade · Goods; full calendar year; reporter ITA. Exports normally FOB and imports CIF; no addition of mirror declarations. Both directions are identified from the same customs authority.
- Export share: Italy to Iceland
- 2025 · UN Comtrade · Exports to the partner / worldwide exports by the same reporter; same year and coverage.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
| Indicator | Italy | Iceland |
|---|---|---|
| Nominal GDP | 2.55 trillion USD2025 · WB | 38.58 billion USD2025 · WB |
| GDP per capita | 43,308.64 USD2025 · WB | 98,323.48 USD2025 · WB |
| GDP growth | 0.54 %2025 · WB | 1.28 %2025 · WB |
| Policy interest rate | 2.5 %2026-09-16 · BCE | |
| Inflation · annual average | 1.53 %Annual average · 2025 · WB | 4.09 %Annual average · 2025 · WB |
| Inflation · latest year-on-year figure | ||
| Unemployment | 6.39 %ILO est.2025 · WB | 3.63 %ILO est.2025 · WB |
| Budget balance (% of GDP) | -3.1 %IMF est.2025 · IMF | -2.8 %IMF est.2025 · IMF |
| Gross public debt (% of GDP) | 137.1 %IMF est.2025 · IMF | 56.1 %IMF est.2025 · IMF |
| Current account balance (% of GDP) | 1.15 %2025 · WB | -3.48 %2025 · WB |
| Population | 58,915,656World Bank est.2025 · WB | 392,404World Bank est.2025 · WB |
| Area | 302,070 km²2023 · WB | 103,000 km²2023 · WB |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDItaly: 2025 · World Bank · Official World Bank series. Observation year, not download date.Iceland: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- GDP per capita
- Current USD per personItaly: 2025 · World Bank · Official World Bank series. Observation year, not download date.Iceland: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- GDP growth
- Annual real change (%)Italy: 2025 · World Bank · Official World Bank series. Observation year, not download date.Iceland: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Policy interest rate
- Central bank instrument (%)Italy: 2026-09-16 · ECB: deposit facility; shared euro-area rate · European Central Bank · ECB deposit facility rate, shared by euro-area members; not an independent national rate.
- Inflation · annual average
- Average annual change in headline CPI (%)Italy: 2025 · Annual average change in the CPI (%) · World Bank · Official World Bank series. Observation year, not download date.Iceland: 2025 · Annual average CPI change (%) · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency stated
- Unemployment
- % of the labour force; definition used by the stated institutionItaly: 2025 · ILO modelled estimate; percentage of the labour force · World Bank · ILO est. · Official World Bank series. Observation year, not download date.Iceland: 2025 · ILO modelled estimate; percentage of the labour force · World Bank · ILO est. · Annual World Bank observation, with its original year; not monthly data.
- Budget balance
- General government (% of GDP)Italy: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.Iceland: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Gross public debt
- General government (% of GDP)Italy: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.Iceland: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Current account balance
- % of GDPItaly: 2025 · World Bank · Official World Bank series. Observation year, not download date.Iceland: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Population
- PeopleItaly: 2025 · World Bank · World Bank est. · Extrapolated estimate identified by the World Bank; not a census for the reference year.Iceland: 2025 · World Bank · WB est. · The source indicates an extrapolated population; this is not a census count.
- Area
- Total area in km²; territorial coverage of the sourceItaly: 2023 · World Bank · Official World Bank series. Observation year, not download date.Iceland: 2023 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
Italy to Iceland
| Product or sector | Value / share |
|---|---|
| Machinery and mechanical appliances | 37.3 M USD2025 · Source |
| Electrical and electronic equipment | 19.5 M USD2025 · Source |
| Vehicles and components | 4.7 M USD2025 · Source |
| Dairy products, eggs and honey | 2.7 M USD2025 · Source |
| Meat and edible offal | 1.4 M USD2025 · Source |
| Pharmaceutical products | 1.3 M USD2025 · Source |
| Mineral fuels and oils | 0.0256 M USD2025 · Source |
| Metal ores | 0.00272 M USD2025 · Source |
Iceland to Italy
How trade has changed
Millions of current USD · full calendar years
View chart figures
| Period | Total | Italy to Iceland | Iceland to Italy |
|---|---|---|---|
| 2021 | 168.4 | 152.2 | 16.2 |
| 2022 | 168.8 | 152.9 | 15.9 |
| 2023 | 196.1 | 165.8 | 30.2 |
| 2024 | 169.9 | 149.8 | 20 |
| 2025 | 183.6 | 152.5 | 31.1 |
Connections between people
In science and technology, it promotes connections between schools, universities, research centres and organisations. Cultural diplomacy comprises literature, visual arts and Italian language dissemination and support for Icelandic Dante Alighieri and Comites groups. [1]
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from Italy living in Iceland | ||
| Residents from Iceland living in Italy | ||
| Study and training: Italy in Iceland | ||
| Study and training: Iceland in Italy | ||
| Academic stays: Italy in Iceland | ||
| Academic stays: Iceland in Italy | ||
| Travel: Italy to Iceland | ||
| Travel: Iceland to Italy |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
Bilateral context
Italy’s Oslo embassy is also accredited to Iceland, which has an honorary Italian consulate general in Reykjavík under its jurisdiction. The profile identifies coordination in the UN, NATO, OSCE and Council of Europe. [1]
The scale of both economies
Nominal GDP for Italy is 2,551.6 billion USD (2025), compared with 38.6 for Iceland (2025). The reference populations are 58.92 and 0.392 million, respectively. In the same year, the economy of Italy was 66.13 times that of Iceland in nominal GDP. The comparison provides context on market size, but does not, on its own, measure influence, well-being or diplomatic closeness. Estimates and their sources retain their labels in the tables. [5] [6] [7] [8]
Recent developments
Recent developments and latest available data · Review: 2026-10-08
Cooperation and bilateral issues
The trade office assists Italian businesses on markets, investment and Icelandic partner contacts. In science and technology, it promotes connections between schools, universities, research centres and organisations. Cultural diplomacy comprises literature, visual arts and Italian language dissemination and support for Icelandic Dante Alighieri and Comites groups. The document describes an institutional collaboration structure and active exchange channels, although it lists no new scientific treaty or completed bilateral research project. [1]
What merchandise trade shows
In 2025, merchandise trade between the two countries (Italy and Iceland) totalled 183.6 million current USD. Shipments from the first to the second were 152.5 million; those in the opposite direction, 31.1 million. The difference between the two flows was 121.4 million, in favour of Italy. This is a goods balance, not the total balance of the economic relationship: it excludes services, income and transfers. Both directions come from a single customs reporter to avoid adding mirror records. [2]
The partner's share of exports
Sales from Italy to the partner represented 0.021% of its worldwide goods exports in 2025. The share compares the same reporter, year and coverage. It measures export concentration, not the percentage of GDP dependent on this relationship. A partner may be important in a specific sector even if its share of total goods trade is small. [2]
Five years of trade trends
The consistent series shows 168.4 million USD in 2021 and 183.6 million in 2025. The change between the two endpoints was +9.1 % in current dollars. The highest annual value in the period was recorded in 2023, at 196.1 million. The chart allows the two directions to be compared to see whether they moved together or differently. The change combines quantities, prices and exchange rates; it is not automatically attributed to a treaty, a visit or a political decision. The same reporter is retained and missing years are not interpolated. [3]
Documented trade sectors
Within the selected chapters, machinery and mechanical appliances stands out in shipments from Italy to Iceland, at 37.3 million USD in 2025. Within the selected chapters, pharmaceutical products stands out in shipments from Iceland to Italy, at 17.1 million USD in 2025. The table compares eight selected chapters with the same coverage as the trade total. It is not a complete list or proof that the first item in this selection is the leading product across the entire relationship. A chapter groups numerous goods: machinery and components, for example, do not describe a single business transaction. [4]
Sources and data
Periods and scope of the figures
Institutional sources and periods accompany each figure. Annual trade, investment positions, residents and visits are distinct measures. Empty cells do not mean zero. Statements of intent are not presented as project implementation or treaties in force.
- Bilateral relations — ITA-ISL
amboslo.esteri.it · Institutional source · Accessed: 2026-10-08
- Bounded matrix; reporter, partner, year, chapter and direction identified in each record
UN Comtrade · Institutional source · Accessed: 2026-10-08
- Trade series 2021–2025
UN Comtrade · Institutional source · Accessed: 2026-10-08
- Bounded matrix; reporter, partner, year, chapter and direction identified in each record
UN Comtrade · Institutional source · Accessed: 2026-10-08
- NY.GDP.MKTP.CD; ISO and reference year; no military dataset expansion
World Bank · Institutional source · Accessed: 2026-10-07
- Official series — gdp
World Bank · Institutional source · Accessed: 2026-10-07
- SP.POP.TOTL; ISO and reference year; no military dataset expansion
World Bank · Institutional source · Accessed: 2026-10-07
- Official series — population
World Bank · Institutional source · Accessed: 2026-10-07
Additional sources on products and human connections
- UN Comtrade
2026-10-08 · Accessed: 2026-10-08 · Bounded matrix; reporter, partner, year, chapter and direction identified in each record.