The Central Bank of Iceland published balance of payments data showing a current account deficit of ISK 82.3bn (6.8% of GDP) in Q2 2025, a deterioration of ISK 25.9bn from the previous quarter and ISK 44.8bn from Q2 2024. The outcome was driven mainly by a historically large deficit on goods trade linked to investment related to data centre development. The goods balance posted a deficit of ISK 135.2bn, while services recorded a surplus of ISK 61.8bn. Primary income was in surplus by ISK 3.9bn and secondary income showed a deficit of ISK 12.8bn. At quarter-end, the net international investment position remained positive at ISK 2,089bn (43.9% of GDP) but deteriorated by ISK 91bn during the quarter, with external assets of ISK 6,762bn and liabilities of ISK 4,673bn; the króna appreciated by just under 2.8% on a trade-weighted basis, foreign securities markets rose 11.0% between quarters, and the domestic stock market fell 1.6%.
Central Bank of Iceland 2025-09-04
Central Bank of Iceland reports Q2 2025 current account deficit widening to ISK 82.3bn on historically large goods trade gap
The Central Bank of Iceland reported a Q2 2025 current account deficit of ISK 82.3bn (6.8% of GDP), primarily due to a significant goods trade deficit linked to data centre investments. Despite a positive net international investment position of ISK 2,089bn (43.9% of GDP), it deteriorated by ISK 91bn during the quarter.