The Central Bank of Iceland published preliminary balance-of-payments data showing a current account deficit of ISK 120.3 billion in the second quarter of 2026, equivalent to 9.3% of GDP. The deficit widened by ISK 91.4 billion from the previous quarter and by ISK 4.4 billion from a year earlier, driven by a goods trade deficit of ISK 154.4 billion. A services surplus of ISK 66.6 billion partly offset the goods shortfall, while primary and secondary income recorded deficits of ISK 18 billion and ISK 14.5 billion, respectively. Iceland’s net international investment position improved by ISK 351 billion during the quarter to ISK 2.408 trillion, or 46.9% of GDP. External assets totaled ISK 7.448 trillion and liabilities ISK 5.040 trillion. Price and exchange-rate movements added ISK 397 billion to the net position by increasing asset values by ISK 420 billion and liability values by ISK 24 billion, while financial transactions reduced the net position by ISK 13 billion.
2026-09-03Central Bank of Iceland
Central Bank of Iceland reports second-quarter current account deficit of ISK 120.3 billion, net external position rises to 46.9% of GDP
Iceland recorded a second-quarter current account deficit of ISK 120.3 billion, or 9.3% of GDP, as a large goods deficit outweighed the services surplus. The net international investment position rose by ISK 351 billion to ISK 2.408 trillion, equivalent to 46.9% of GDP, mainly because of price and exchange-rate movements.