Iceland Current Account Deficit Widens Sharply

The current account deficit in Iceland widened sharply to ISK 82.3 billion in the second quarter of 2025 from ISK 37.4 billion in the corresponding period of the previous year. The goods account deficit increased significantly to ISK 135.2 billion in Q2 of 2025 from ISK 88.6 billion in the same period earlier. At the same time, the services account surplus moderated to ISK 61.8 billion from ISK 65.7 billion. In contrast, primary income shifted to a surplus of ISK 3.9 billion from a deficit of ISK 1.2 billion, while the secondary income deficit decreased to ISK 12.8 billion from ISK 13.4 billion in Q2 2024.