Iceland Current Account Gap Hits 18-Year High

2026-09-03 09:36 By Mariene Camarillo 1 min. read

Iceland’s current account deficit widened to ISK 120.3 billion in the second quarter of 2026 from ISK 115.9 billion in the corresponding period of the previous year.

This marked the largest current account shortfall since the second quarter of 2008, as the goods trade deficit increased sharply to ISK 154.4 billion from ISK 128.1 billion, driven largely by a much stronger increase in imports, which rose 8.6%, compared with a softer 2.3% increase in exports.

Meanwhile, the primary income deficit narrowed to ISK 18 billion from ISK 32.8 billion, while the services surplus increased to ISK 66.6 billion from ISK 61.9 billion a year earlier.

The secondary income deficit also narrowed to ISK 14.5 billion from ISK 16.8 billion.



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Iceland Current Account Gap Hits 18-Year High
Iceland’s current account deficit widened to ISK 120.3 billion in the second quarter of 2026 from ISK 115.9 billion in the corresponding period of the previous year. This marked the largest current account shortfall since the second quarter of 2008, as the goods trade deficit increased sharply to ISK 154.4 billion from ISK 128.1 billion, driven largely by a much stronger increase in imports, which rose 8.6%, compared with a softer 2.3% increase in exports. Meanwhile, the primary income deficit narrowed to ISK 18 billion from ISK 32.8 billion, while the services surplus increased to ISK 66.6 billion from ISK 61.9 billion a year earlier. The secondary income deficit also narrowed to ISK 14.5 billion from ISK 16.8 billion.
2026-09-03
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.
2026-06-04
Iceland Current Account Swings to Deficit in Q4
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.
2026-03-05