07 March 2005

Balance of payments in Q4/2004 (corrected March 7)

The deficit on Iceland’s current account in the fourth quarter of 2004 amounted to 29.6 billion krónur (b.kr.) according to preliminary figures from the Central Bank of Iceland. In the fourth quarter of 2003 the current account deficit was 18.2 b.kr. The current account deficit amounted to 69.9 b.kr. over the whole of 2004, compared with a 42.4 b.kr. deficit in 2003. Measured at fixed exchange rates, exports of goods and services grew by 11.9% (corrected) while imports increased by 19.7% (corrected) from the same period the previous year. The merchandise balance deteriorated by 21 b.kr. (corrected) year-on-year and the balance on services by 5.8 b.kr. (corrected). The deficit on the income account (compensation of employees and interest and investment income) was 17.7 b.kr. in 2004, compared with 16.5 b.kr. in the preceding year. Net current transfers, which largely consist of public sector contributions to international agencies and development aid, were estimated at 1.2 b.kr. in 2004.

Corrected press release no. 6/2005 (pdf-32kb)

(With corrections from March 7, 2005)