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Iceland’s trade deficit narrowed to ISK 40.8 billion in December 2025 from ISK 45.9 billion in the corresponding month of the previous year, as both exports and imports contracted. Exports fell 12.3% year-on-year to ISK 74.2 billion, weighed down by lower shipments of manufactured goods (-25.1%) and other products (-55%). Imports also declined 11.9% to ISK 115.0 billion, driven by sharp drops in food and beverages (-11.2%), industrial supplies (-27.0%), and capital goods (-55.3%).