Central Bank of Iceland publishes preliminary Q4 2024 balance of payments data showing ISK 95.2bn current account deficit and net IIP at 42.5% of GDP

The Central Bank of Iceland published preliminary balance of payments and external position statistics for Q4 2024, reporting a current account deficit of ISK 95.2bn and a positive net international investment position (IIP) of ISK 1,963bn, or 42.5% of GDP. The quarterly deficit represented a deterioration of ISK 147.4bn from the prior quarter and ISK 77.7bn from Q4 2023. In Q4 2024, goods trade recorded a deficit of ISK 104.1bn while services trade posted a surplus of ISK 34.5bn, alongside deficits of ISK 10.5bn on primary income and ISK 15.1bn on secondary income. For 2024 as a whole, the current account showed a deficit of ISK 116.8bn versus a surplus of ISK 36.5bn in 2023, driven by a goods trade deficit of ISK 314.5bn and partly offset by a services trade surplus of ISK 261.7bn, with deficits of ISK 10.6bn on primary income and ISK 53.4bn on secondary income. Net IIP improved by ISK 120bn over the quarter, with external assets of ISK 6,549bn and liabilities of ISK 4,586bn, reflecting ISK 79bn of improvement from financing activities and ISK 51bn from price and exchange rate movements. The Central Bank flagged uncertainty in the financial account and IIP data linked to the settlement of the sale of an Icelandic industrial company to non-residents, which it identified as the main driver of a large errors and omissions item. It noted the statistics could be revised when final information becomes available, and that this uncertainty does not affect the current account balance.