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Positive Economic Development in Iceland

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Positive Economic Development in Iceland

A cargo ship with containers.

Photo: Páll Stefánsson.

Iceland’s GDP (gross domestic product) grew by 3.5 percent in real terms in 2013, according to Statistics Iceland. It’s the most significant increase in GDP in six years.

The economic growth in 2013 is mainly driven by a large surplus in the balance of trade while the domestic final expenditure decreased slightly, or by 0.3 percent.

Exports grew by 6.9 percent and imports by 0.4 percent. This resulted in an ISK 156 billion (USD 1.31 billion, EUR 1.02 billion) surplus in the balance of trade in goods and services in 2013.

The increased surplus in the balance of trade in 2013 and much lower deficit in primary income from abroad, according to figures from the Central Bank of Iceland, resulted in a large current account surplus, ISK 121 billion (USD 1.02 billion, EUR 790 million), or 6.5 percent of GDP. The current account deficit is ISK 60 billion (USD 501 million, EUR 389 million) or 3.4 percent of GDP in 2012.

This is the highest surplus recorded since the compilation of national accounts started in Iceland in 1945 and only in six cases since 1980 has this balance actually been positive.

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