The deficit on
Iceland's current account in the first quarter of 2003
amounted to one billion kr. according to preliminary figures from the Central
Bank. At the same time in 2002 the current account deficit was 1.5 b.kr. There
was a 6.7 b.kr. surplus on the balance of goods but a 2.7 b.kr. deficit on the
balance of services.
Measured at
fixed prices
exports of goods and services increased by 5% while imports grew by 5.7% from
the same period the previous year. The deficit on the balance on income was 4.6
b.kr. in the first quarter of 2003 compared with a 6 b.kr. deficit in the same
period last year and current transfer was negative by 0.4
b.kr.
Capital inflow
measured 14.1 b.kr. during the first quarter of the year. External borrowing was
23.5 b.kr. and direct inward investment 6.6 b.kr. Capital outflows in connection
with portfolio investment amounted to 7.3 b.kr. Other investments amounted to
6.4 b.kr., in particular in the form of lending by Icelandic banks to foreign
entities, which has grown sharply in recent years, and the outstanding loan
stock currently stands at 73 b.kr. The Central Bank's foreign reserves increased
slightly during the first quarter to amount to 36 b.kr. at the end of
March.
Balance of payments
in b.kr.
Exports of goods and
services
Imports of goods and
services
Income and current transfer,
net
Capital
and Financial Account
Financial
account excl. reserves
Reserve assets (-
increase)
Iceland's net international investment
position was negative by 554.5 b.kr. at the end of March and had decreased since
the beginning of the year on account of the appreciation of the króna. Detailed
information on the balance of payments and external position is presented in the
attached tables along with revised statistics for the past two years. The figure
for direct investment abroad has been revised downwards with updated statistics
and a review of reinvested earnings. The adjusted figure reduces the balance on
income and thereby the balance on the current account. After this revision,
there was an 0.8 b.kr. deficit on the current account in 2002 instead of the
surplus of just over 2 b.kr. previously reported. The net external position is
also affected by the revision and was negative by 562.5 b.kr. at the end of 2002
and by 586.4 b.kr. at the end of 2001.
On Tuesday,
June 10 2003
the Central Bank will publish tables showing the balance of payments and
external position on the Statistics page of its website (www.sedlabanki.is). A new overview of
Iceland's external debt will also be
presented in accordance with the IMF's Special Data
Dissemination Standard (see the IMF website: http://dsbb.imf.org). External debt will be
broken down classified in this overview by main creditors, by maturity (short-term and long-term)
on an original maturity basis and by instrument.
For further information contact
Jakob Gunnarsson, Division Chief at the Statistics Department of the Central
Bank of Iceland, tel. (+355)569-9600.