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Iceland’s trade deficit expanded significantly to ISK 63.4 billion in May 2025 from ISK 20.9 billion in the same month last year, reaching a historic high. Imports rose sharply by 30% year-on-year to ISK 143.2 billion, driven by a surge in purchases of capital goods (+121%)—due to the large-scale imports of computer products by companies that run data centres in the country—and transport equipment (48%). Conversely, purchases declined in fuels and lubricants (-14%) and food and beverages (-10%). Meanwhile, exports declined by 10% from a year earlier to ISK 79.8 billion, driven by lower supplies of agricultural products (-20%), marine products (-17%), farmed fish (-14%), and manufacturing products (-6%). For the last twelve months, Iceland's trade deficit increased to ISK 479.5 billion from ISK 381.8 billion in the previous period.