Iceland Current Account Deficit Narrows in Q1

Iceland’s current account deficit narrowed sharply to ISK 32.1 billion in the first quarter of 2026 from ISK 70.2 billion in the corresponding period of the previous year. The services account surplus increased to ISK 29.3 billion from ISK 17.8 billion, while the goods account deficit narrowed to ISK 23.4 billion from ISK 84.4 billion in Q1 2025. On the other hand, the primary income balance deteriorated, shifting to a deficit of ISK 20.6 billion from a surplus of ISK 9.1 billion, and the secondary income deficit widened to ISK 17.3 billion from ISK 12.8 billion a year earlier.

The current account in Iceland recorded a deficit of ISK 38 billion in the fourth quarter of 2025, shifting from a surplus of ISK 20.9 billion in the same period of the previous year. The services account surplus narrowed to ISK 49.4 billion from ISK 53.1 billion, while the secondary income shortfall stood at ISK 15 billion, unchanged from Q4 2024. In contrast, the goods account deficit narrowed sharply to ISK 73.4 billion from ISK 97.3 billion, and the primary account swung into a small surplus of ISK 1 billion, up from a deficit of ISK 27.1 billion. For the full year, Iceland’s current account deficit widened to ISK 177.7 billion from ISK 148.5 billion in 2024.

The current account surplus in Iceland narrowed to ISK 26.9 billion in the third quarter of 2025, from ISK 41 billion in the same period of the previous year. The goods account deficit widened sharply to ISK 101.6 billion from ISK 75.2 billion in the third quarter of 2024, while the secondary income shortfall increased to ISK 15.1 billion from ISK 10.3 billion. On the other hand, the services account surplus rose to ISK 137.4 billion from ISK 131.7 billion, and the primary income account posted a surplus of ISK 6.2 billion, compared with a deficit of ISK 5.2 billion in the same period last year.