Iceland’s trade deficit narrowed sharply to ISK 9.9 billion in February 2026 from ISK 59.5 billion in the same month a year earlier. Exports rose 2% year-on-year to ISK 78 billion, driven by increased shipments of marine products (13.1%) and agricultural products (3.3%). Meanwhile, imports fell 35.2% to ISK 88 billion, weighed down by declines in capital goods excluding transport (-65.6%), transport equipment (-30.6%), and fuels and lubricants (-26.9%).