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Iceland’s Trade Deficit Decreasing

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Iceland’s Trade Deficit Decreasing

According to preliminary numbers from Statistics Iceland, the country’s trade deficit has decreased considerably between years, from ISK 150 billion (USD 2.4 billion, EUR 1.6 billion) in 2006 to ISK 100 billion (USD 1.6 billion, EUR 1.1 billion) in 2007.

The trade deficit is still considered too high, though. “It can primarily be explained by the fact that operations surrounding Kárahnjúkar dam took longer than expected in addition to investments in the real estate market,” Lúdvík Elíasson at the analyst department of Landsbanki Bank told Fréttabladid.

“But this is a lower trade deficit than we had predicted,” Elíasson added.

The analyst department of Glitnir Bank expects the trade deficit situation to improve further in 2008, despite a cut of the cod fishing quota.

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