The Central Bank of Iceland released new preliminary balance of payments and external position statistics for Q4 2024, reporting a current account deficit of ISK 95.2bn and a net international investment position (IIP) surplus of ISK 1,963bn, equal to 42.5% of GDP at quarter-end. The Q4 deficit widened by ISK 147.4bn from the previous quarter and by ISK 77.7bn from Q4 2023, driven by a goods trade deficit of ISK 104.1bn and partly offset by a services trade surplus of ISK 34.5bn; primary and secondary income deficits were ISK 10.5bn and ISK 15.1bn. For 2024 as a whole, the current account recorded a deficit of ISK 116.8bn versus a surplus of ISK 36.5bn in 2023, with a goods trade deficit of ISK 314.5bn, a services trade surplus of ISK 261.7bn, and primary and secondary income deficits of ISK 10.6bn and ISK 53.4bn. Net IIP improved by ISK 120bn during Q4 to external assets of ISK 6,549bn and liabilities of ISK 4,586bn, with the Bank attributing the quarterly improvement to financing activities and valuation effects, alongside a trade-weighted króna appreciation of just under 3.5%. The Bank flagged uncertainty in its financial transactions data linked to settlement of the sale of an Icelandic industrial company to non-residents, noting this as the main driver of a large errors and omissions item and a potential source of future revisions to the financial account and IIP figures, without affecting the current account balance.
Central Bank of Iceland 2025-03-06
Central Bank of Iceland publishes preliminary Q4 2024 balance of payments showing ISK 95.2bn current account deficit and net IIP at 42.5% of GDP
The Central Bank of Iceland reported a Q4 2024 current account deficit of ISK 95.2bn and a net international investment position surplus of ISK 1,963bn, equal to 42.5% of GDP. The Bank highlighted uncertainty in financial transactions data due to the sale of an Icelandic industrial company to non-residents, which may lead to future revisions in financial account and IIP figures.