04.09.202509:33:23UTC+00Iceland Current Account Deficit Widens Sharply

Iceland experienced a steep rise in its current account deficit, reaching ISK 82.3 billion in the second quarter of 2025, compared to ISK 37.4 billion in the same timeframe the previous year. This surge was largely driven by a notable increase in the goods account deficit, which expanded to ISK 135.2 billion from ISK 88.6 billion year-over-year. Meanwhile, the services account surplus saw a slight decline, standing at ISK 61.8 billion, down from ISK 65.7 billion. On a more positive note, the primary income balance transitioned into a surplus of ISK 3.9 billion, improving from a deficit of ISK 1.2 billion. Additionally, the secondary income deficit saw a reduction, falling to ISK 12.8 billion from ISK 13.4 billion as recorded in the second quarter of 2024.