It is safe to say that in terms of its external trade and external balance, Iceland fared better during the 2020 Corona Crisis than was generally expected. Even though the country’s largest export sector, tourism, lay comatose for much of the year, 2020 saw Iceland’s ninth consecutive current account surplus.
According to newly published figures from the Central Bank (CBI), the current account surplus measured ISK 22.1bn in Q4/2020. It had already been established that the goods account deficit for the period came to ISK 15.5bn, while the surplus on services trade totalled ISK 26.4bn. In addition to this was a surplus of ISK 18.3bn on primary income and a deficit of ISK 7.1bn on secondary income. Particularly noticeable is that the fourth quarter was the year’s best in terms of the current account balance. Actually, the current account showed a deficit in only one quarter of 2020: Q2.