Iceland: Gross capital formation (constant LCU)

Key figures

What the numbers say

In 2025, Iceland's gross capital formation (constant LCU) rose 5.9% on 2024 (from 903.9 billion to 957.03 billion).

Across the 30 yearly changes before that (1995 to 2024), the average change was +6% and a typical year strayed about 16.9% from that (the standard deviation). This year's change was 0.0 standard deviations below that average, so it was an ordinary year: it sits within the range of normal year-to-year movement.

On record, the biggest yearly rise was 70.6% in 1971 and the biggest yearly fall was 50.3% in 2009. The numbers show how large and when, not why; for the cause, look at what happened in that country in those years.

From 2016 to 2025 the straight-line trend is upward, about 35.21 billion a year. A straight line explains 78% of the movement over 10 observed years.

Worked out from the yearly values above. How the checks work: standard deviation, z-scores and straight-line trends.

A straight-line projection, tested first

Extending that straight line gives about 1.06 trillion for 2028. We show this only because the same method, fitted on earlier years, predicted 2023 to 2025 better than "no change" would have: its average miss was 20.27 billion, against 82.95 billion for assuming no change. Treat it as a continuation of the recent pattern, not a forecast of events: it cannot see a recession, a policy change or a revision to the data.

See how a linear trend forecast works and the guide on forecasting without fooling yourself.

How it compares

In 2025, Iceland had the 48th highest value of the 123 economies reporting that year. Higher is not always better: for some indicators the lowest value is the one to aim for. See the full ranking.

Closest to Iceland in the 2025 ranking

• Sweden — 44th of 123: 1.36 trillion
• Egypt, Arab Rep. — 45th of 123: 1.15 trillion
• Norway — 46th of 123: 1.01 trillion
• Nepal — 48th of 123: 947.85 billion
• Ethiopia — 49th of 123: 873.06 billion
• Brazil — 50th of 123: 776.57 billion

What this measures

Gross capital formation includes acquisitions less disposals of produced assets for purposes of fixed capital formation, inventories or valuables. This indicator is expressed in constant prices, meaning the series has been adjusted to account for price changes over time. The reference year for this adjustment varies by country. This series is expressed in local currency units.

All 56 values

Gross capital formation (constant LCU) in nearby economies

• Albania — 565.85 billion (2024)
• Armenia — 2.15 trillion (2025)
• Austria — 94.52 billion (2025)
• Belarus — 57.67 billion (2025)
• Belgium — 123.12 billion (2025)
• Bosnia and Herzegovina — 12.75 billion (2025)
• Bulgaria — 14.78 billion (2025)
• Croatia — 16.62 billion (2025)
• Cyprus — 5.78 billion (2025)
• Czechia — 1.77 trillion (2025)
• Denmark

More economic policy & debt data for Iceland

• Total reserves, including gold (current US$) — US$7.73 billion (2025)
• Total reserves, excluding gold (current US$) — US$7.45 billion (2025)
• GDP (current US$) — US$38.58 billion (2025)
• GDP (current LCU) — 4.96 trillion (2025)
• GDP (constant 2015 US$) — US$23.12 billion (2025)
• GDP (constant LCU) — 3.59 trillion (2025)
• GDP per capita (current US$) — US$98,324 (2025)
• GDP per capita (current LCU) — 12.63 million (2025)
• GDP per capita (constant 2015 US$) — US$58,910 (2025)
• GDP per capita (constant LCU) — 9.14 million (2025)
• GNI (current US$)

Reading data like this

• Where to find free public data, and how to check it before you trust it — 2 min read
• Data analysis examples: 6 worked from one dataset — 3 min read
• Real change or random noise? A plain guide to reading your numbers — 2 min read

Questions people ask

What is Iceland's gross capital formation (constant LCU)?

957.03 billion in 2025, according to the World Bank (World Development Indicators).

How has it changed since 1970?

It is up 599.36% from 136.84 billion in 1970 (3.6% a year on average, compounded). The highest value was 957.03 billion in 2025 and the lowest 136.84 billion in 1970.

Source

World Bank, World Development Indicators, indicator NE.GDI.TOTL.KN, licensed CC BY 4.0. Original source: Country official statistics, National Statistical Organizations and/or Central Banks; National Accounts data files, Organisation for Economic Co-operation and Development (OECD); Staff estimates, World Bank (WB) Figures are fetched from the World Bank API and refreshed monthly; see the series on data.worldbank.org. The full definition and method are in the World Bank's metadata glossary. Comparisons use the same World Bank release.

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