02 June 2017

Balance of payments in the first quarter of 2017 and the international investment position

Central Bank of Iceland

The current account balance was positive by 11.1 b.kr. during the first quarter of 2017, as opposed to a positive balance of 44.6 b.kr. in the preceding quarter. The balance on goods was negative in the amount of 35.1 b.kr., while the balance on services was positive by 43.1 b.kr. The balance on primary income was positive by 8.7 b.kr., whereas secondary income was negative in the amount of 5.5 b.kr.

This is included in new information published on the Central Bank of Iceland website, showing the preliminary balance of payments in Q1/2017 and the external position of the economy at the end of the quarter.

According to the preliminary figures, foreign assets totalled 3,909 b.kr. at the end of the quarter, while foreign liabilities totalled 3,817 b.kr. The net external position was therefore positive by 91 b.kr., or 3.7% of GDP, and improved by 48 b.kr., or 2% of GDP, between quarters. Net financial transactions improved the international investment position by 19 b.kr., as foreign liabilities declined by 74 b.kr. and foreign assets by 56 b.kr. as a result of the transactions. Price and exchange rate movements had a positive impact on the international investment position in the amount of 41 b.kr. This was due primarily to rising prices of foreign securities holdings during the quarter. The króna depreciated against major currencies, or by 1.3% in terms of the trade-weighted index.

Here is a pdf-file of the press release with tables and footnotes

No. 17/2017
2 June 2017

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