The deficit on Iceland's current account in the first quarter of 2004
amounted to 13 billion kr. according to preliminary figures from the Central
Bank. In the first quarter of 2003 the current account deficit was 2.7 b.kr. The
merchandise account was in surplus by 0.3 b.kr. but there was a deficit of 5
b.kr. on the services account. The deficit on the income account was 8.1 b.kr.
in the first quarter of 2004, compared with 6.1 b.kr. in the same period the
preceding year. Measured at fixed exchange rates , exports of goods and services
increased by 4.1% while imports increased by 17.1% from same quarter the
preceding year.
Capital inflow measured 23.6 b.kr. in Q1/2004. Net foreign borrowing amounted to 83.2 b.kr., entirely in the form of medium-term notes on the European market, while other foreign borrowing decreased. Direct foreign investment in Iceland was 6.4 b.kr. Capital outflows in connection with portfolio investment abroad amounted to 24.8 b.kr., and foreign direct investment by residents 9.7 b.kr. Other investment was 24.1 b.kr., in particular foreign lending by Icelandic banks, which has soared in recent years with an outstanding stock now amounting to 165 b.kr. The Central Bank's foreign reserves amounted to 66.7 b.kr. at the end of March 2004 and had risen by 7.5 b.kr. during the quarter.
Balance of payments in b.kr.<'xml:namespace
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Quarter:
I
II
III
IV
I
2003
2003
2003
2003
2004
Current
Account
-2.7
-16.9
-12.7
-11.1
-13.0
Exports of goods and
services
71.1
68.1
79.7
68.9
72.8
Imports of goods and
services
-67.3
-78.3
-87.4
-78.5
-77.5
Income and current transfer,
net
-6.5
-6.7
-5.1
-1.5
-8.3
Capital
and Financial Account
8.0
14.9
8.9
2.4
23.6
Financial
account excl. reserves
8.2
15.0
18.6
16.1
31.1
Assets, net
-16,1
-49,7
-26,4
-114,6
-58,6
Liabilities, net
24,3
64,7
45,1
130,7
89,6
Reserve assets (-
increase)
-0.2
-0.0
-9.6
-13.6
-7.5
Net
errors and omissions
-5.3
2.0
3.8
8.8
-10.5
Iceland's net international investment position was negative by 591 b.kr. at the end of March, 33 b.kr. more than at the beginning of the year. Detailed information on the balance of payments and the external position is presented in the attached tables, along with revised figures for last year. The revised current account deficit in 2003 was 43.4 b.kr. and capital inflows measured 34.1 b.kr.
On Monday June 7, 2004, 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 table showing Iceland's gross external debt will also be published in accordance with the IMF's Special Data Dissemination Standard, classified by sectors, maturity and instruments.
For further information contact Jakob Gunnarsson, Division Chief at the
Statistics Department of the Central Bank of Iceland, tel. (+354)
569-9600.
No. 15/2004
June 3, 2004