New Industrial Policy for Iceland introduced
The Government of Iceland has approved a new industrial policy that sets out a long-term vision for economic growth, productivity, and competitiveness to 2035.
The policy is intended to support sustainable economic development and create a more predictable environment for investment and business activity. It is accompanied by an action plan for 2026–2027 containing 35 measures across a range of sectors.
Key priorities include strengthening energy supply and infrastructure, simplifying regulation and licensing processes, supporting innovation and export-driven industries.
The Government aims to promote a more diversified and resilient economy while improving productivity and long-term living standards. The policy notes that economic growth in recent years has relied heavily on population growth, and highlights the importance of increasing productivity and supporting future-oriented industries.
The policy was developed in consultation with representatives from industry, labour market organisations, and other stakeholders. It will be reviewed regularly and followed by updated action plans in the coming years. An independent Industrial Policy Council provides expert advice on the development and implementation of the Government’s industrial policy.