The value of exported goods in BOP* in the fourth quarter of 2020 was estimated 173.6 billion ISK and the value of imported goods 189.1 billion ISK. Hence, a deficit in the balance of trade in goods in BOP was estimated 15.5 billion ISK. In the same quarter, export of services was estimated 103.3 billion ISK and import of services was estimated 76.9 billion ISK. Hence, the surplus of balance of trade in services was estimated 26.4 billion ISK.
The total export of trade in goods and services was therefore estimated 276.9 billion ISK in the fourth quarter of 2020 compared with 335.8 billion in the same period the year before. Import of trade in goods and services was estimated 265.9 billion ISK in the fourth quarter of 2020 compared with 291.4 billion ISK in the same period in the previous year. The surplus of trade in goods and services was estimated 10.9 billion ISK in the fourth quarter of 2020 compared with a surplus of 44.4 billion ISK in the fourth quarter the year before.
In the latest 12-month period, the deficit in the balance of trade in goods and services was estimated 17.5 billion ISK compared with a surplus of 153.9 billion ISK for the previous 12 months.
| The value of exports and imports of goods and services (billion ISK) | ||||||
| 4th quarter 2019 | 4th quarter 2020 | % | 1st quarter 2019 - 4th quarter 2019 | 1st quarter 2020 - 4th quarter 2020 | % | |
| Exports of goods and services | 335.8 | 276.9 | -18 | 1,350.8 | 1,002.8 | -26 |
| Exports of goods | 162.7 | 173.6 | 7 | 653.4 | 628.5 | -4 |
| Exports of services | 173.1 | 103.3 | -40 | 697.4 | 374.3 | -46 |
| Imports of goods and services | 291.4 | 265.9 | -9 | 1,196.9 | 1,020.3 | -15 |
| Imports of goods | 179.8 | 189.1 | 5 | 759.4 | 718.8 | -5 |
| Imports of services | 111.6 | 76.9 | -31 | 437.5 | 301.5 | -31 |
| Balance of trade in goods and services | 44.4 | 10.9 | 153.9 | -17.5 | ||
Exports of services has decreased by almost 46% in a 12-month comparison The total value of exports of services in the fourth quarter of 2020 decreased by 69.9 billion ISK (40%) from the same period the year before, at current rates of exchange. The total exported value of travel in the fourth quarter of 2020 decreased by 55.1 billion ISK (89%) compared with the same period the year before. Exported value of transport services also decreased considerably in the fourth quarter of 2020 or by 21.3 billion ISK (52%). The decrease in the value of exports of passenger transport by air is the main reason behind the decrease in the value of transport services. However, there was an increase in the value of exports of charges for the use of intellectual property by 8.4 billion ISK (30%) compared with the fourth quarter of 2019, which can be explained by increased revenues in the pharmaceutical industry.
For the period January 2020 to December 2020, the total value of exports of services was 374.3 billion ISK and decreased by 323.1 billion ISK (46%) 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 heavy decrease in exported value of travel by 74% and the decrease in exported value of transport services by 54%. However, there was an increase in the value of exports of charges for the use of intellectual property by 46% in the latest 12-month period compared with the previous 12 months. There was also an increase in the exports in the value of other business services by 27% in the same period, which can be explained by increase in the exports of research and development services.
Value of imports of services cosiderably less in 12-month comparison
The total value of imports of services in the fourth quarter of 2020 decreased by 34.7 billion ISK (31%) from the same period the year before, at current rates of exchange. The value of imported travel decreased by 35.8 billion (77%) compared with fourth quarter of 2019. The value of imported transportation services also decreased considerably between years, by 3.9 billion ISK (21%). However, there was an increase in the value of imports of other business services of 3.3 billion ISK (16%), which can be explained by an increase in the value of imports of research and development services.
For the period January 2020 to December 2020, the total value of imports of services was 301.5 billion ISK and decreased by 136 billion ISK (31%) 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 63%. The imported value of transportation decreases by 27%, while the imported value of other business services increases by 9%.
| The value of exports and imports of services (billion ISK) | ||||||
| 4th quarter 2019 | 4th quarter 2020 | % | 1st quarter 2019 - 4th quarter 2019 | 1st quarter 2020 - 4th quarter 2020 | % | |
| Exports of services | 173.1 | 103.3 | -40 | 697.4 | 374.3 | -46 |
| Transport | 41.3 | 20.0 | -52 | 196.8 | 91.3 | -54 |
| Travel | 61.9 | 6.8 | -89 | 330.4 | 86.5 | -74 |
| Charges for the use of intellectual property | 28.5 | 37.0 | 30 | 35.0 | 50.9 | 46 |
| Other business services | 17.5 | 17.4 | -1 | 48.5 | 61.8 | 27 |
| Other service categories | 23.9 | 22.1 | -7 | 86.7 | 83.8 | -3 |
| Imports of services | 111.6 | 76.9 | -31 | 437.5 | 301.5 | -31 |
| Transport | 18.4 | 14.6 | -21 | 83.5 | 61.0 | -27 |
| Travel | 46.8 | 10.9 | -77 | 185.1 | 69.0 | -63 |
| Other business services | 20.7 | 24.0 | 16 | 66.7 | 72.8 | 9 |
| Other service categories | 25.6 | 27.3 | 6 | 102.1 | 98.7 | -3 |
| Balance of trade in services | 61.5 | 26.4 | 259.9 | 72.8 | ||
Monthly trade in goods and services
Parallel to this publication, Statistics Iceland updates data for monthly trade in goods and services for the fourth quarter of 2020. In December 2020, total export of trade in goods and services was estimated 111.9 billion ISK and total import of trade in goods and services was estimated 88.4 billion ISK. The surplus of balance of trade in goods and services was therefore estimated 23.5 billion ISK in December 2020.
*According to Balance of Payments (BOP) and National Accounts (NA) standards.