Economic growth 3.5 percent last year

Economic growth in Iceland was 3.5 percent in 2013 according to revised annual national accounts for that year. More growth has not been recorded since 2007 or before the global economic crisis hit the country. Statistics Iceland say the growth was mainly driven by a large surplus in trade balance while the domestic expenditure decreased by 0.3 percent.

„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, 121 billion ISK or 6.5% of GDP, compared to current account deficit of 60 billion ISK or 3.4% 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.“

According to Statistics Iceland the terms of trade deteriorated by 1.1 percent of the GDP of the previous year during 2013 having a similar impact on Gross National Income (GNI). Despite this development the improvements in the current account balance led to 11.2 percent growth in GNI.