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Iceland Rule of Law

Rule of Law  RL.EST

Iceland's rule of law was 1.70 in 2025, ranked 8th globally. This represents a 1.3% decrease from 2024. Data from World Bank WGI, covering 1996–2025.

1.70 −0.02 (-1.3%)
Year 2025 Rank #8 Global Peak 1.94 (2005) Source World Bank WGI

Iceland Rule of Law (1996–2025)

Overview

Iceland's rule of law stood at 1.70 in 2025, a decline of +0.02 from 2023. Based on recent trends, this figure is projected to reach 1.70 by 2025. Iceland ranked 8th globally.

Iceland's Rule of Law index, as reported by the World Bank's World Governance Indicators, has demonstrated a relatively stable trajectory over the past 26 years. Starting from 1.60 in 1996, the country experienced a significant improvement in its rule of law environment, reaching an all-time peak of 1.94 in 2005. However, following the 2008 financial crisis, Iceland's index declined to an all-time trough of 1.48 in 2016. Since then, the country has shown signs of recovery, with the latest reading standing at 1.70 in 2025. Notably, Iceland's current ranking places it among the top-performing countries globally, alongside Singapore and Norway, which also scored 1.71 and 1.72, respectively. Switzerland, another peer country, trails closely with a score of 1.69. As the global economic landscape continues to evolve, a potential shift in Iceland's economic policy or judicial system could impact the trajectory of its rule of law index, prompting it to either maintain its current position or continue its upward trend.

Data & projection

Year Rule of Law YoY change Rank
2026* trend 1.69 - -
2025* trend 1.70 - -
2025 1.70 −0.02 #8
2023 1.72 +0.02 #8
2022 1.70 −0.01 #11
2021 1.71 −0.04 #9
2020 1.75 +0.02 #9
2019 1.73 +0.05 #11
2018 1.68 +0.11 #14
2017 1.57 +0.09 #19
2016 1.48 −0.15 #22
2015 1.63 −0.07 #19
2014 1.70 +0.05 #19
2013 1.65 −0.02 #16
2012 1.68 −0.01 #16
2011 1.69 −0.02 #14
2010 1.71 −0.00 #15
Show all years (1996-2025)
* Linear trend extrapolation

Detected Pattern

Export Boom Cycle
Current account surplus with strong export growth (>15% YoY), reserve accumulation, and moderate GDP growth. Typical of commodity exporters during price surges.
Reserves YoY +43.3% GDP growth 6.2% C/A balance 9.1%
Occurred 768 times, 546 successful
Reserves YoY
+25.6%
GDP growth
4.0%
C/A balance
14.5%
Reserves YoY
+14.6%
GDP growth
3.7%
C/A balance
2.9%
Reserves YoY
+12.8%
GDP growth
43.8%
C/A balance
16.4%
Reserves YoY
+12.6%
GDP growth
6.0%
C/A balance
0.5%
Reserves YoY
+38.3%
GDP growth
5.0%
C/A balance
1.2%
Reserves YoY
+18.0%
GDP growth
2.9%
C/A balance
3.9%

Analysis

Iceland matched the Export Boom Cycle pattern in 2016. Historically, 71% of countries showing this pattern (546 out of 768) saw rule of law improve within 24 months. View full analysis →

Frequently Asked Questions

What is Iceland's rule of law?▾

Iceland's rule of law was 1.70 in 2025. Ranked 8th globally. This represents a 1.3% decrease from the previous year.

What was the highest rule of law in Iceland?▾

Iceland's rule of law peaked at 1.94 in 2005.

What was the lowest rule of law in Iceland?▾

The lowest rule of law in Iceland was 1.48 in 2016.

How does Iceland rank in rule of law?▾

Iceland ranks 8th globally in rule of law as of 2025.

What is the World Bank indicator code for rule of law?▾

The World Bank indicator code is RL.EST. Data sourced from World Bank WGI.

What is the projected rule of law of Iceland in 2025?▾

Iceland's rule of law is projected to reach 1.70 by 2025 based on trend extrapolation.

What is the rule of law of Iceland in 2025?▾

The rule of law of Iceland in 2025 was 1.70. This ranks 8th in the world.

Cite this page

APA
Iceland Rule of Law. HistorySaid. Retrieved October 31, 2026, from https://historysaid.com/iceland/rule-of-law/
BibTeX
@misc{historysaid_iceland_rule-of-law, title = {Iceland Rule of Law}, url = {https://historysaid.com/iceland/rule-of-law/}, publisher = {HistorySaid}, year = {2026} }
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