Wednesday - 12 September 2007
Gross Domestic Product 2006 - Preliminary figures
Statistics Iceland releases now the preliminary annual national accounts for 2006. The figures show Gross Domestic Product (GDP) in 2006 amounting to 1,163 billion ISK. In real terms, GDP grew at a rate of 4.2% after 7.1% growth in the year before.
The growth in GDP during last year can mainly be explained by 4.4% growth in household final consumption and 19.8% growth in fixed capital formation. This was partly offset by a growth in imports, which increased by 10.1% in real terms. At the same time exports declined by 5.1%. This together with a deficit of 87 billion ISK in primary income from abroad resulted in a deficit on current account by 296 billion ISK, 25.5% of GDP. In 2005 the balance on current account was negative by 164 billion ISK, 16% of GDP.
In spite of some improvements in terms of trade, a considerable growth in net outflow of primary income led to a lower growth in Gross National Income (GNI) by 1.7% after 7.9% growth in the year before.