Estonia’s economy grew 1.8% year-on-year in the second quarter of 2026, down from a revised 2.9% expansion in Q1, while Iceland’s GDP contracted 1.1% after revised 3.8% growth. Estonia’s slowdown reflected weaker household and government spending, although exports, imports, manufacturing and construction strengthened. Iceland’s contraction was driven mainly by weaker net trade, with exports falling 7.3%, while gross fixed capital formation rebounded 5.7%. On a seasonally adjusted quarterly basis, Estonia’s GDP rose 0.3% after revised 1.0% growth, whereas Iceland’s GDP fell 3.0% after 3.7% growth.