According to newly published figures from Statistics Iceland, GDP contracted by 0.1% in Q3/2019, owing entirely to a negative contribution from net trade, as domestic demand (the sum of consumption, investment, and accumulated inventories of export goods) increased by 3.2% during the quarter. Exports contracted by nearly 13% in Q3, however, largely because of the contraction in tourism. On the other hand, imports of goods and services contracted by nearly 9% in volume terms.
Aggregate figures for the first nine months of the year show, however, that in spite of the above developments, net trade has buoyed up GDP growth. During this period, domestic demand fell by 0.9%, yet because of a positive contribution from net trade, GDP growth measured 0.2% for the quarter.