The exported value of services was estimated 103.3 billion ISK in the second quarter of 2021 while the imported value of services was estimated 78.1 billion ISK. Therefore, the surplus in the balance of trade in services was estimated 25.2 billion ISK compared with a surplus of 2.2 billion ISK for the same period the year before. For the period July 2020 to June 2021, the surplus of balance of trade in services was estimated 63.6 billion ISK compared with a surplus of 193.9 in the 12 months prior.
| The value of exports and imports of services (billion ISK) | ||||||
| 2nd quarter 2020 | 2nd quarter 2021 | % | 3rd quarter 2019 - 2nd quarter 2020 | 3rd quarter 2020 - 2nd quarter 2021 | % | |
| Exports of services | 67.3 | 103.3 | 54 | 577.2 | 362.4 | -37 |
| Transport | 19.6 | 24.1 | 23 | 160.4 | 82.0 | -49 |
| Travel | 6.8 | 26.2 | 284 | 232.8 | 67.6 | -71 |
| Charges for the use of intellectual property | 9.5 | 14.4 | 51 | 43.5 | 55.0 | 27 |
| Other business services | 12.5 | 18.0 | 44 | 54.7 | 72.5 | 33 |
| Other service categories | 19.0 | 20.8 | 10 | 85.8 | 85.2 | -1 |
| Imports of services | 65.1 | 78.1 | 20 | 383.3 | 298.7 | -22 |
| Transport | 14.5 | 17.8 | 23 | 74.4 | 60.8 | -18 |
| Travel | 9.7 | 15.4 | 59 | 139.1 | 54.0 | -61 |
| Other business services | 15.8 | 18.3 | 16 | 69.0 | 79.0 | 14 |
| Other service categories | 25.1 | 26.6 | 6 | 100.8 | 104.9 | 4 |
| Balance of trade in services | 2.2 | 25.2 | 193.9 | 63.6 | ||
Value of exports of services decreased by 37% in a 12-month comparison
The total value of exports of services in the second quarter of 2021 increased by 36 billion ISK (54%) from the same period the year before, at current rates of exchange. The total exported value of travel in the second quarter of 2021 increased considerably or by 19.3 billion ISK compared with the same period the year before. Exported value of transport services also increased in the second quarter of 2021 or by 4.5 billion ISK (23%). There was also an increase in the value of exports of other business services by 44% and the value of exports of charges for the use of intellectual property by 51% compared with the second quarter of 2020. Increased revenues in the pharmaceutical industry explain the increase in the value of exports of charges for the use of intellectual property.
For the period July 2020 to June 2021, the total value of exports of services was 362.4 billion ISK and decreased by 214.8 billion ISK (37%) compared with the 12 months prior at current rates of exchange. The main reason behind this decrease in the value of exports of services was the decrease in exported value of travel by 71% and the decrease in exported value of transport services by 49%. However, there was an increase in the value of exports of charges for the use of intellectual property by 27%. There was also an increase in the exports in the value of other business services by 33% in the same period, which can be explained mainly by increase in exports of technical, trade-related and other business services.
Value of imports of services decreased by 22% in 12-month comparison
The total value of imports of services in the second quarter of 2021 increased by 13 billion ISK (20%) from the same period the year before, at current rates of exchange. The value of imported travel increased by 5.7 billion (59%) compared with the second quarter of 2020. The value of imported transportation services also increased considerably between years, by 3.3 billion ISK (23%). The value of imports of other business services increased by 2.5 billion ISK (16%).
For the period July 2020 to June 2021, the total value of imports of services was 298.7 billion ISK and decreased by 84.6 billion ISK (22%) compared with the 12 months prior at current rates of exchange. The main reason behind this decrease in the value of imports of services is the decrease in imported value of travel by 61%. The imported value of transportation decreased by 18%, while the imported value of other business services increased by 14%.
Deficit in balance of trade in goods and services 62,6 billion in the latest 12-month period
The value of exported goods in BOP* in the second quarter of 2021 was estimated 183.8 billion ISK and the value of imported goods 239.6 billion ISK. Hence, a deficit in the balance of trade in goods in BOP was estimated 55.7 billion ISK.
The total export of trade in goods and services was therefore estimated 287.1 billion ISK in the second quarter of 2021 compared with 217.1 billion in the same period the year before. Import of trade in goods and services was estimated 317.7 billion ISK in the second quarter of 2021 compared with 234.4 billion ISK in the same period in the previous year. The deficit of trade in goods and services was estimated 30.5 billion ISK in the second quarter of 2021 compared with a deficit of 17.4 billion ISK in the second quarter the year before.
In the latest 12-month period, the deficit in the balance of trade in goods and services was estimated 60.8 billion ISK compared with a surplus of 85.9 billion ISK for the previous 12 months.
| The value of exports and imports of goods and services (billion ISK) | ||||||
| 2nd quarter 2020 | 2nd quarter 2021 | % | 3rd quarter 2019 - 2nd quarter 2020 | 3rd quarter 2020 - 2nd quarter 2021 | % | |
| Exports of goods and services | 217.1 | 287.1 | 32 | 1,191.3 | 1,039.4 | -13 |
| Exports of goods | 149.7 | 183.8 | 23 | 614.1 | 677.1 | 10 |
| Exports of services | 67.3 | 103.3 | 54 | 577.2 | 362.4 | -37 |
| Imports of goods and services | 234.4 | 317.7 | 36 | 1,105.5 | 1,100.3 | 0 |
| Imports of goods | 169.3 | 239.6 | 41 | 722.1 | 801.5 | 11 |
| Imports of services | 65.1 | 78.1 | 20 | 383.3 | 298.7 | -22 |
| Balance of trade in goods and services | -17.4 | -30.5 | 85.9 | -60.8 | ||
Monthly trade in goods and services
Parallel to this publication, Statistics Iceland updates data for monthly trade in goods and services for the first second of 2021. In June 2021, total export of trade in goods and services was estimated 95.9 billion ISK and total import of trade in goods and services was estimated 129.9 billion ISK. The deficit of balance of trade in goods and services was therefore estimated 34 billion ISK in June 2021.
Revision of previously published figures
The treatment of certain leases of ships and aircrafts have changed from previously published figures, for the years 2018-2020. The impact of these changes appears in figures on external trade, capital formation and balance of payments. A distinction is made in the European System of Accounts (ESA 2010) and Balance of Payments (BPM6) between operating leases and financial leases. When assessing what should be classified as an operating or a financial lease, one has to take account of where the economic ownership of the asset in question lies, i.e. whether it is in the hands of the lessor or the lessee.
Economic ownership of an asset is not necessarily the same as legal ownership, where legal ownership refers to the registered owner of the asset in question but economic ownership takes account of who accepts the operating risks and receives the economic benefits from using the asset in a productive activity. If the lessor is the legal owner and the lessee is the economic owner a lease should be classified as financial lease. The aforementioned changes to previously published figures refer to leases of assets previously classified as operating leases and included in trade in services now classified as financial leases and included in trade in goods.
These changes lead to an increase in imports of goods as well as an increase in gross fixed capital formation, but a decrease in imports of services. The effect will also be visible in an increase in foreign debt and interest payments.
*According to Balance of Payments (BOP) and National Accounts (NA) standards.