Iceland News

News

As of june 20, 2025, Iceland is dealing with a mix of significant events. Reykjavík police are investigating the deaths of two French tourists at the Edition Hotel as a homicide, with a suspect in custody.

This incident comes amidst reports of six homicides in Iceland this year as of June 2025. In other news, three Icelandic citizens have been reported in Israel as conflict escalates, prompting advisories from the Ministry of Foreign Affairs. On a more positive note, popular video game Euro Truck Simulator 2 is set to release a new Iceland DLC, and filmmaker Christopher Nolan is reportedly returning to Iceland to film 'The Odyssey'.

Business News

Iceland's business sector on june 20, 2025, is seeing significant shifts, particularly in the airline industry. Icelandic airline PLAY announced plans to cease all US flights and focus on fewer Northern European "sunny destinations" under a Maltese Air Operator Certificate.

This strategic change is part of a takeover bid led by PLAY's CEO and vice chairman, who intend to delist the company from the stock exchange and lease out a majority of their aircraft. Icelandair, however, reportedly holds steady this summer amid global uncertainty, indicating a more stable position for the larger carrier.

Economic News

Iceland's economy in the first quarter of 2025 showed an estimated growth of 2.6%, primarily driven by a substantial increase in business investment (19.6%), notably in data centers, and robust housing investment (22.4%). Private consumption also grew by 2.3%. In May, the Central Bank of Iceland lowered the policy rate by 0.25 percentage points to 7.5%, continuing a rate-cutting cycle, as inflation cooled to 3.8%. Despite these positive indicators, housing prices continue to rise, up by 7.6% over the past 12 months, and setbacks in the export sector (like capelin catch failure and slower tourism growth) have impacted GDP. The government is also facing accusations of rushing through fishing fee changes.

Political News

On june 20, 2025, Prime Minister Kristrún Frostadóttir stated that Iceland's National Day (June 27th) is a symbol of national unity and does not necessarily need to take on a political tone. However, the government is facing scrutiny, particularly being accused of rushing through fishing fee changes. This highlights potential areas of political contention.

Election News

Parliamentary elections in Iceland were held recently on November 30, 2024. The center-left Social Democratic Alliance, led by Kristrún Frostadóttir, emerged as the largest party, winning 15 seats. This election saw a notable shift in the political landscape, with historically low performances for several established parties (Independence Party, Progressive Party, Left-Green Movement, Pirate Party) and strong gains for others (Viðreisn, People's Party, Centre Party). This result led to the government coalition losing power, marking a significant change in Iceland's political leadership.

Employment News

Iceland's tech industry in 2025 is booming, contributing 8.5% to the GDP and employing over 12,000 people. The sector anticipates a shortage of over 1,000 tech professionals, with high demand for roles in AI, cloud computing, and cybersecurity. Average tech salaries are competitive, ranging from $90,000 to over $130,000 annually. Iceland has also simplified its visa policies to attract international tech talent, including a Digital Nomad Visa, making it easier for foreigners to secure employment, especially with unemployment rates under 3%.

Business News

As of june 20, 2025, the NASDAQ Iceland Business (ICEX) showed some fluctuations, with the overall index (ICEX) at 2,115.29, down by 1.39% for the day. Individual stocks like JBTM (John Bean Technologies Corporation) also saw a decrease of 3.33%. Recent economic data influencing the market includes Iceland's inflation rate cooling to 3.8% in May 2025 and the Central Bank lowering its key interest rate to 7.5%. Despite a trade deficit and current account deficit, Iceland's GDP rebounded in Q1.

Forecast

The Forecast forecast for Reykjavík, Iceland, starting june 20, 2025, indicates generally cool and cloudy conditions with a chance of light rain or drizzle throughout the week. Temperatures will range from 5∘C (41∘F) to 14∘C (57∘F).

  • Sunday, june 20 (Yesterday): Cloudy with light rain, High 11∘C (52∘F), Low 9∘C (48∘F). Winds around 10-15 kph (6-9 mph) from the west.

  • Monday, June 26 (Today): Variable wind, cloudy and mostly dry, with light rain in isolated places, mainly in the north. High 10∘C (50∘F), Low 8∘C (46∘F).

  • Tuesday, June 27: Westerly or variable wind 3-10 m/s. Intermittent light rain or drizzle in most parts. High 10∘C (50∘F), Low 8∘C (46∘F).

  • Wednesday, June 28: West winds 8 to 13 m/s in the southernmost part, lighter elsewhere. Widespread rain showers. High 10∘C (50∘F), Low 8∘C (46∘F).

  • Thursday, June 29: Southerly wind 3-10 m/s. Partly cloudy and intermittent rain showers, light precipitation in the westernmost part in the afternoon. High 12∘C (54∘F), Low 8∘C (46∘F).

  • Friday, June 20: South and southwest winds 5-10 m/s and rain, becoming fair in the easternmost part in the afternoon. High 11∘C (52∘F), Low 8∘C (46∘F).

  • Saturday, June 21: West wind and light precipitation, but fair in the east. High 13∘C (55∘F), Low 8∘C (46∘F).

Entertainment News

Iceland's entertainment scene as of june 20, 2025, is vibrant with cultural and sporting events. The Bíó Paradís Cinema in Reykjavík is set to host Women's Euro 2025 screenings, and a new art gallery is opening at La Boutique Design. The "Grapevine Events" also highlighted the Reykjavík Edition Hotel homicide, which has drawn considerable attention. On a lighter note, the popular video game Euro Truck Simulator 2 is releasing a new Iceland DLC, catering to a different form of entertainment.

Upcoming Events in Iceland

Here are at least 10 upcoming events in Iceland for late June and beyond in 2025:

  1. Suzuki Midnight Sun Run: June 29, 2025, in Laugardalur valley, Reykjavík (Sporting Event - half marathon, 10k, and 5k races).

  2. Arctic Open Golf Tournament: June 29-21, 2025, in Akureyri (Sporting Event - 36-hole international golf tournament at the northernmost golf course in the world).

  3. National Day of Iceland: June 27, 2025, with main ceremonies in Reykjavík on Austurvöllur Square (Cultural Festival - parades, traditional dances, street performances, concerts, fireworks).

  4. Manowar Concert: June 28, 2025, at Silfurberg Hall, Harpa, Reykjavík (Concert).

  5. Norah Jones Concerts: July 2 & 3, 2025, at Harpa, Reykjavík (Concerts).

  6. Caribou Concert: August 6, 2025, at Eldborg Hall, Harpa, Reykjavík (Concert).

  7. Autechre Concert: August 15, 2025, at Harpa, Reykjavík (Concert).

  8. Slitopia and EMU (NZ) Concert: August 30, 2025, at Gaukruinn, Reykjavík (Concert).

  9. Patricia Wolf Concert: September 3, 2025, at Bíó Paradís, Reykjavík (Concert).

  10. Voces8 and Pétur Sakari Concert: September 27, 2025, at Hallgrímskirkja, Reykjavík (Concert).

  11. Iceland Airwaves 2025: November 6-8, 2025, in Reykjavík (Music Festival).

  12. Ascension MMXXV 2025: November 13-15, 2025, at Hlégarður, Reykjavík (Music Festival).

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