The Central Bank of Iceland has published on its website the preliminary statistics for the balance of payments in the third quarter of 2016, and for the external position at the end of the quarter. 1
The current account balance was positive by 100.4 b.kr. during the quarter, as opposed to a positive balance of 32.5 b.kr. in the preceding quarter. This is the largest current account surplus since measurements began and the first single-quarter surplus to exceed 100 b.kr. The balance on goods was negative in the amount of 22.5 b.kr., while the balance on services2 was positive by 121.6 b.kr. The balance on primary income was positive by 6.1 b.kr., whereas secondary income was negative in the amount of 4.8 b.kr.
Foreign assets totalled 4,040 b.kr. at the end of the quarter, while foreign liabilities totalled 3,980 b.kr. The net position is therefore positive by 60 b.kr., or 2.6% of GDP. This is the first positive net external position since measurements were introduced.3 Net liabilities declined between quarters by 30 b.kr., or 1.3% of GDP. Net financial transactions improved the international investment position by approximately 129 b.kr., as foreign assets increased by 140 b.kr. and foreign liabilities by 11 b.kr. as a result of the transactions. Price and exchange rate movements had a negative impact on the international investment position in the amount of 83 b.kr. during the quarter. The króna appreciated against most other major currencies during the quarter, or by 6.7% in terms of the trade-weighted index. The appreciation was greatest against the pound sterling, at 10.1%
No. 30/2016
2 December 2016
Further information can be obtained from Ríkarður Bergstað Ríkarðsson and Pétur Örn Sigurðsson at the Central Bank of Iceland Statistics Department, tel. +354 569-9600.