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Iceland
38
Moderate
Risk
Risk
#65
of 171
Riskier
than 62% of currencies
37
global avg score
$752
$1,000 in 5 years
Impact on Citizens
Citizens need to earn at least 7.4% per year on savings to stay ahead. Money sitting in a regular account is slowly losing value.See savings calculator ↓
Economic Indicators
Inflation Rate
5.9%
Debt to GDP
80.2%
GDP Growth
-1.0%
Broad Money / GDP
67.2%
Banking & Stability
NPL Ratio
1.6%
Reserve Months
4.8
Current Account
-2.8%
FX Volatility
9.2
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 ISK5.9% inflation
ISK 752−ISK 248 (25% purchasing power lost)
Your ISK 1,000 buys 25% less in 5 years
What if you invested ISK 1,000 instead? (5yr, in ISK terms)
USD-denominated assets gain an additional ~2.9%/yr from expected ISK depreciation vs USD
Hold USD Cash
ISK 993
−ISK 7
-0.1%/yr net in ISK
S&P 500
ISK 1831
+ISK 831
range: ISK 852–ISK 3553
10% USD return + 2.9% FX · ±16% vol
Gold
ISK 1674
+ISK 674
range: ISK 494–ISK 4460
8% USD return + 2.9% FX · ±24% vol
Bitcoin
ISK 3417
+ISK 2417
range: ISK 220–ISK 19.9k
25% USD return + 2.9% FX · ±54% vol
All values in ISK. USD-denominated assets (S&P 500, Gold, Bitcoin) include an estimated FX gain of ~2.9%/yr based on the inflation differential between Iceland (5.9%) 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: 2026-05-21