04 June 2018

Current account surplus 0.3 b.kr. in Q1/2018 – net IIP positive by 235 b.kr.

Central Bank of Iceland

The current account surplus measured 0.3 b.kr. in Q1/2018. There was a deficit on goods trade in the amount of 27.8 b.kr and a 32.6 b.kr. surplus on services trade, as well as a 0.1 b.kr. deficit on primary income and a 4.3 b.kr. deficit on secondary income.

This is included in new information published on the Central Bank of Iceland website, showing the preliminary balance of payments in Q1/2018 and the external position of the economy at the end of the quarter.

According to the preliminary figures, foreign assets totalled 3,096 b.kr. at the end of the quarter, while foreign liabilities totalled 2,861 b.kr. The net external position was therefore positive by 235 b.kr., or 9% of GDP, and improved by 55 b.kr., or 2.1% of GDP. Net financial transactions improved the international investment position by 58 b.kr. during the quarter, as foreign liabilities rose by 40 b.kr. and foreign assets by 98 b.kr. as a result of the transactions. Exchange rate movements and price changes had a negative impact on the external position in the amount of 28 b.kr. This is due to a 3.5% appreciation of the króna in trade-weighted terms and a nearly 2% decline in foreign securities market prices during the quarter.

See here the press release with tables and explanations

No. 8/2018
4 June 2018

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