02 March 2018

Current account surplus 2.8 b.kr. in Q4/2017 – net IIP positive by 190 b.kr. at end of 2017

Central Bank of Iceland

The current account surplus measured 2.8 b.kr. in Q4/2017. There was a deficit on goods trade in the amount of 40.2 b.kr. and a 53.4 b.kr. surplus on services trade, as well as a 5.1 b.kr. deficit on primary income and a 5.3 b.kr. deficit on secondary income.

This is included in new information published today on the Central Bank of Iceland website, showing the preliminary balance of payments in Q4/2017 and the external position of the economy at the end of the quarter.

According to the preliminary figures, foreign assets totalled 3,092 b.kr. at the end of 2017 while foreign liabilities totalled 2,902 b.kr. The net international investment position (NIIP) was therefore positive by 190 b.kr., or 7.5% of GDP, and improved by 63 b.kr., or 2.5% of GDP, between quarters. Net financial transactions improved the position by 24 b.kr., as foreign liabilities declined by 110 b.kr. and foreign assets by 85 b.kr. as a result of the transactions. Price and exchange rate movements had a positive impact on the NIIP in the amount of 33 b.kr., owing mainly to a 5.3% price increase in foreign securities markets. The króna appreciated against most major currencies during the quarter, or by 0.5% in terms of the trade-weighted index.

No. 4/2018
2 March 2018

Press release no. 4/2018 with tables and footnotes (PDF)