The current account deficit measured ISK 27.1bn in Q1, according to newly published figures from the Central Bank (CBI). This is the largest single-quarter CA deficit in nearly eleven years, if we set aside the calculated impact of the failed banks’ estates between 2009 and 2015. A deficit of this size may raise some eyebrows, but fortunately, this one is very likely to prove temporary.
It had already been established that the goods and services accounts showed deficits of just under ISK 22bn and ISK 11bn, respectively, during the quarter. According to CBI figures, the primary income balance was in surplus by ISK 12.8bn, while secondary income showed a deficit of ISK 7.1bn.