The value of exported goods in BOP* in the third quarter of 2020 was estimated 154 billion ISK and the value of imported goods 187.9 billion ISK. Hence, a deficit in the balance of trade in goods in BOP was estimated 33.9 billion ISK. In the same quarter, export of services was estimated 90.5 billion ISK and import of services was estimated 70.1 billion ISK. Hence, the surplus of balance of trade in services was estimated 20.4 billion ISK.
The total export of trade in goods and services was therefore estimated 244.5 billion ISK in the third quarter of 2020 compared with 374.7 billion in the same period the year before. Import of trade in goods and services was estimated 258.1 billion ISK in the third quarter of 2020 compared with 314.3 billion ISK in the same period in the previous year. The deficit of trade in goods and services was estimated 13.6 billion ISK in the third quarter of 2020 compared with a surplus of 60.4 billion ISK in the third quarter the year before.
In the first three quarters of 2020 the deficit in the balance of trade in goods and services was estimated 30.5 billion ISK compared with a surplus of 109.4 billion ISK for the same period the year before.
Exports of services has decreased by almost 50% in the first three quarters of 2020
The total value of exports of services in the third quarter of 2020 decreased by 133.5 billion ISK (59.6%) from the same period the year before, at current rates of exchange. The total exported value of travel in the third quarter of 2020 was 28.4 billion and decreased by 91.2 billion ISK (76.3%) compared with the same period the year before at current exchange rates. Exported value of transport services also decreased considerably in the third quarter of 2020 or by 47.7 billion ISK (72.1%) compared with the same period last year. The decrease in the value of exports of passenger transport by air is the main reason behind the decrease in transport services.
In the third quarter of 2020, the value of exports of services to Europe was 62.8 billion ISK, or 69.4% of total export value. Thereof, export of services to the Germany was 10.9 billion ISK, 12.1% of the total export value, and export of services to the United Kingdom was 10.6 billion ISK, 11.7 % of the total export value. Export of services to the United States was 16 billion ISK or 17.7% of the total export value for the same period.
Value of imports of services has also decreased considerably in 2020
The total value of imports of services in the third quarter of 2020 decreased by 45.6 billion ISK (39.4%) from the same period the year before at current rates of exchange. The value of imported travel services was 16.1 billion ISK and decreased by 33.6 billion (81.7%) at current rates of exchange. The value of imported transportation services also decreased considerably between years, by 9.8 billion ISK (32.5%).
In the third quarter of 2020, the value of imports of services from Europe was 57.4 billion ISK or 81.8% of total imports of services. Thereof, services import from the Netherlands was 8.1 billion or 11.6% of total imports and services import from the United Kingdom was 7.6 billion or 10.9% of total imports. Import of services from the United States was 8.2 billion ISK or 11.7% of total imports for the same period.
Monthly trade in goods and services
Parallel to this publication, Statistics Iceland updates data for monthly trade in goods and services for the third quarter of 2020. In September 2020, total export of trade in goods and services was estimated 83.9 billion ISK and total import of trade in goods and services was estimated 94.2 billion ISK. The deficit of balance of trade in goods and services was therefore estimated 10.2 billion ISK in September 2020.
| The value of exports and imports of services 2019 and 2020 | |||||
| Million ISK at current exchange rate | Change on prev. year at current exch. rates, % 1st to 3rd quarter | ||||
| 3rd quarter | 1st to 3rd quarter | ||||
| 2019 | 2020 | 2019 | 2020 | ||
| Export of services | 223,972.7 | 90,508.4 | 524,232.3 | 269,594.9 | -48.6 |
| Transport | 66,131.7 | 18,453.2 | 155,446.1 | 71,252.9 | -54.2 |
| Travel | 119,549.1 | 28,385.9 | 268,508.9 | 79,703.5 | -70.3 |
| Other business services | 13,553.1 | 20,752.7 | 31,011.1 | 43,740.8 | 41.0 |
| Other service categories | 24,738.9 | 22,916.6 | 69,266.3 | 74,897.8 | 8.1 |
| Import of services | 115,693.0 | 70,131.8 | 325,898.5 | 223,392.1 | -31.5 |
| Transport | 24,216.2 | 14,422.1 | 65,051.7 | 46,322.8 | -28.8 |
| Travel | 49,678.8 | 16,078.9 | 138,345.4 | 58,041.2 | -58.0 |
| Other business services | 16,306.1 | 17,252.7 | 45,997.2 | 48,047.2 | 4.5 |
| Other service categories | 25,491.9 | 22,378.1 | 76,504.2 | 70,980.9 | -7.2 |
| Balance of trade in services | 108,279.7 | 20,376.5 | 198,333.9 | 46,202.9 | |
Revision of external trade statistics
Statistics Iceland has changed the procedure of revisions of external trade statistics in such a way that in addition to the traditional publication of preliminary and final data for trade in goods and services, time series will undergo benchmark revision every five years. Changes due to improved data, newer or revised estimation methods or classifications will be implemented as necessary. In this publication the results of the first major revision are published. In order to be in line with other European countries the next major revision is planned for 2024 and every fifth year thereafter.
Trade in goods
The goal of the revision of trade in goods was to implement corrections to older series and update data according to the IMTS 2010 manual and older versions. Correction to older series included an increase of exports by 22.1 billion ISK because of lack of customs declarations (2018-2019), of errors in customs declarations (1999-2019), and because of custom declarations that Statistics Iceland did not receive (2014-2019). These additions affected marine products the most. New customs declaration was implemented by the Customs Authorities in 2019. Preliminary data from the new customs declarations was implemented, 4.3 billion ISK in 2019 and 24 billion ISK in 2020. An update is expected as more complete data becomes available.
Regarding the update of data according to manuals, imported or exported waste and scrap is now included in trade in goods (1999-2020). That change has effects in weight but less in value. Also, undersea communication cables were added to imports in 2004 and 2009 of total value of 16.1 billion ISK. Incomplete information in customs declarations resulted in the fact that other goods that should be included, for example migrants effects and gifts, could not be included this time.
Trade in services
The trade in services revision included changes in categorisation of trade and in improvement of methodology that included revision of buying and selling of banknotes to travellers and improvements of the categorisation of trade with payment cards. The revision of categorisation was only on the import side of trade in services and resulted in 135.5 billion transfer from Other business services (Operating leasing services) to Transport (Passenger transport by air) for the period 2009-2018. Also, a transfer of 16.3 billion from Other personal, cultural and recreational services (Health services) to Travel (Health-related travel) for the period 2009-2019 because of medical treatments of Icelandic patients abroad.
Revisions on methodology resulted in changes both on the import side and export side of trade in services. The revision resulted in a combined 14.7 billion increase in exports of Travel (for the period 2013-2019) and in Telecommunications, computer and information services (for the period 2018-2019). However, the revision resulted in 7.4 billion decrease in the exports of Charges for the use of intellectual property in 2018. Regarding imports of services, the revision of methodology resulted in 21.5 billion increase in Personal, cultural and recreational services, Telecommunications, computer and information services and Transport for the period 2013-2019. At the same time, the revision resulted in a decrease of Travel by 61.1 billion.
*According to Balance of Payments (BOP) and National Accounts (NA) standards.