Even though goods trade generated a sizeable deficit in June, it appears that the deficit for 2019 as a whole will turn out quite a bit smaller than last year’s. The lower real exchange rate is a major factor in this.
The balance on goods was particularly unfavourable in June, showing a deficit of ISK 22.8bn, according to preliminary figures from Statistics Iceland (SI). This is the largest goods account deficit since December 2017. It should be borne in mind, though, that the ISK has depreciated markedly in the recent term. When calculated at constant exchange rates, the goods account deficit for the month was similar to the one in June 2018.