According to new figures released yesterday by the Central Bank of Iceland, Sedlabanki, Iceland’s current account deficit in the first quarter of 2006 was ISK 66 billion, about twice as high as in 2005 when it measured at ISK 33 billion.
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The largest contribution was from the deficit on the merchandise goods account, ISK 32 billion, followed by the income account deficit at ISK 19 billion.
Exports increased by 0.8 per cent year over year, and imports by 23.9 per cent.
Inflation in Iceland now measures at 7.6 per cent.
Statistics Iceland will publish the quarterly national accounts on June 13, including the latest figures for the GDP.
Iceland’s GDP in 2005 was ISK 996 billion, which puts the first quarter’s current account deficit at 26 per cent on an annual basis.
On Monday, the ratings agency Standard and Poor’s revised its outlook for Iceland to negative “on hard landing risk”.
