The Central Bank of Iceland has published preliminary Q1 2026 balance of payments and end-quarter external position data, showing a current account deficit of ISK 32.1bn, or 2.5% of GDP. The deficit narrowed by ISK 7bn from Q4 2025 and by ISK 38.2bn from Q1 2025. The current account reflected a goods trade deficit of ISK 23.4bn and a services surplus of ISK 29.3bn, alongside deficits of ISK 20.6bn on primary income and ISK 17.3bn on secondary income. Iceland’s net international investment position remained positive at ISK 2,178bn, or 42.9% of GDP, but weakened by ISK 104bn during the quarter. External assets stood at ISK 6,900bn and liabilities at ISK 4,722bn. Financial transactions increased assets by ISK 85bn and liabilities by ISK 55bn, while price and exchange rate movements reduced asset values by ISK 230bn and liabilities by ISK 75bn, resulting in an ISK 155bn deterioration in the net external position. The króna appreciated by just under 1.4% on the trade-weighted index, foreign securities prices fell 3.9%, and domestic stock prices fell 5.6%.
Central Bank of Iceland2026-06-04
Central Bank of Iceland publishes preliminary Q1 external accounts showing ISK 32.1bn current account deficit and net international investment position at 42.9% of GDP
The Central Bank of Iceland published preliminary Q1 2026 balance of payments and external position data, reporting a current account deficit of ISK 32.1bn (2.5% of GDP), narrower than in both Q4 2025 and Q1 2025. Iceland’s net international investment position remained positive at ISK 2,178bn (42.9% of GDP) but weakened by ISK 104bn, as financial transactions increased external assets and liabilities while price and exchange rate movements reduced net asset values.