linguistic:translation, structural:reformatting, quality:corruption
Since 2012

Iceland's economy stabilised under the government of Jóhanna Sigurðardóttir and grew by 1.6% in 2012. The centre-right Independence Party was returned to power in coalition with the Progressive Party in the 2013 election. In the following years, Iceland saw a surge in tourism as the country became a popular holiday destination. In 2016, Prime Minister Sigmundur Davíð Gunnlaugsson resigned after being implicated in the Panama Papers scandal. Early elections in 2016 resulted in a right-wing coalition government of the Independence Party, the Reform Party and Bright Future. This government fell when Bright Future quit the coalition due to a scandal involving then-Prime Minister Bjarni Benediktsson 's father's letter of support for a convicted child sex offender. Snap elections in October 2017 brought to power a new coalition consisting of the Independence Party, the Progressive Party, and the Left-Green Movement, headed by Katrín Jakobsdóttir.

After the 2021 parliamentary election, the new government was, just like the previous government, a tri-party coalition of the Independence Party, the Progressive Party, and the Left-Green Movement, headed by Prime Minister Katrín Jakobsdóttir. In April 2024, Bjarni Benediktsson of the Independence party succeeded Katrín Jakobsdóttir as prime minister.