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Iceland
36
Moderate
Risk
Risk
#76
of 171
Safer
than 56% of currencies
36
global avg score
$818
$1,000 in 5 years
Impact on Citizens
Citizens need to earn at least 5.6% per year on savings to stay ahead. Money sitting in a regular account is slowly losing value.See savings calculator ↓
Economic Indicators
Inflation Rate
4.1%
Debt to GDP
80.1%
GDP Growth
1.3%
Broad Money / GDP
67.4%
Banking & Stability
NPL Ratio
1.6%
Reserve Months
5.3
Current Account
-3.5%
FX Volatility
10.3
Governance & Markets
Rule of Law
Not available
Black Market Premium
Not available
Capital Controls
8.0
Peg Fragility
Not available
Currency Structure
Global Currency Role
70.0
FX Regime
free float
Data Coverage
75.0%
Savings Impact Calculator
ISK
Holding cash in ISK4.1% inflation
ISK 818−ISK 182 (18% purchasing power lost)
Your ISK 1,000 buys 18% less in 5 years
What if you invested ISK 1,000 instead? (5yr, in ISK terms)
USD-denominated assets gain an additional ~1.1%/yr from expected ISK depreciation vs USD
Hold USD Cash
ISK 908
−ISK 92
-1.9%/yr net in ISK
S&P 500
ISK 1692
+ISK 692
range: ISK 777–ISK 3316
10% USD return + 1.1% FX · ±16% vol
Gold
ISK 1545
+ISK 545
range: ISK 446–ISK 4176
8% USD return + 1.1% FX · ±24% vol
Bitcoin
ISK 3187
+ISK 2187
range: ISK 195–ISK 18.9k
25% USD return + 1.1% FX · ±54% vol
All values in ISK. USD-denominated assets (S&P 500, Gold, Bitcoin) include an estimated FX gain of ~1.1%/yr based on the inflation differential between Iceland (4.1%) and the US (~3%). This uses purchasing power parity as a long-run approximation — actual FX movements can differ significantly in the short term. S&P 500 based on 1957-2024, Gold on 2000-2024, Bitcoin on 2015-2024. Past performance does not guarantee future results. Not financial advice.
Data last updated: 2026-07-05