The exported value of services was estimated 142.5 billion ISK in the fourth quarter of 2021 while the imported value of services was estimated 122.5 billion ISK. Therefore, the surplus in the balance of trade in services was estimated 20.1 billion ISK compared with a surplus of 26.0 billion ISK for the same period the year before. For the period January to December 2021, the surplus of balance of trade in services was estimated 94.8 billion ISK compared with a surplus of 69.3 in the 12 months prior.
Value of exports of services increased by 24% in 2021
The total value of exports of services in the fourth quarter of 2021 increased by 37.6 billion ISK, or 36%, from the same period the year before, at current rates of exchange. The total exported value of travel in the fourth quarter of 2021 increased considerably compared with the same period the year before, increasing by 39.1 billion ISK. Exported value of transport services increased by 12.4 billion ISK, or 61%, compared with the same period the year before. However, the value of exports of charges for the use of intellectual property decreased by 44% in the fourth quarter of 2021 compared with the same quarter the year before. This decrease can be explained by decreased revenues in the pharmaceutical industry.
For the period January 2021 to December 2021, the total value of exports of services was 468.7 billion ISK and increased by 89.9 billion ISK, or 24%, compared with the 12 months prior at current rates of exchange. Increase in exported value of travel in the same period was 79.4 billion ISK, or 92%. There was also an increase in the exported value of transport services by 28%. However, there was a decrease in the value of exports of other business services by 8% and in the value of exports of charges for the use of intellectual property by 24%. As mentioned before the decrease in exports of charges for the use of intellectual property can be explained by decreased revenues in the pharmaceutical industry.
Value of imports of services increased by 21% in 2021
The total value of imports of services in the fourth quarter of 2021 increased by 43.5 billion ISK, or 55%, from the same period the year before, at current rates of exchange. The value of imported travel increased by 26.1 billion and more than tripled compared with the fourth quarter of 2020. The value of imported transportation services also increased considerably between years, by 9.1 billion ISK, or 62%. However, the value of imports of other business services almost remained the same in the fourth quarter of 2021 compared with the fourth quarter of 2020.
For the period January 2021 to December 2021, the total value of imports of services was 373.9 billion ISK and increased by 64.4 billion ISK, or 21%, compared with the 12 months prior at current rates of exchange. The main reason behind this increase in the value of imports of services is increase in imported value of travel by 34%, in the imported value of transportation by 24% and in the imported value of other business services increased by 14%.
Deficit in balance of trade in goods and services 68.8 billion in 2021
The value of exported goods in BOP* in the fourth quarter of 2021 was estimated 222.1 billion ISK and the value of imported goods 260.8 billion ISK. Hence, a deficit in the balance of trade in goods in BOP was estimated 38.7 billion ISK.
The total export of trade in goods and services was therefore estimated 364.7 billion ISK in the fourth quarter of 2021 compared with 278.4 billion in the same period the year before. Import of trade in goods and services was estimated 383.2 billion ISK in the fourth quarter of 2021 compared with 268 billion ISK in the same period in the previous year. The deficit of trade in goods and services was estimated 18.6 billion ISK in the fourth quarter of 2021 compared with a surplus of 10.5 billion ISK in the fourth quarter the year before.
In 2021, the deficit in the balance of trade in goods and services was estimated 68.8 billion ISK compared with a deficit of 22.1 billion ISK for the year 2020.
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 2021. In December 2021, total exports of trade in goods and services was estimated 132.4 billion ISK and total imports of trade in goods and services was estimated 129 billion ISK. The surplus of balance of trade in goods and services was therefore estimated 3.4 billion ISK in December 2021.
The treatment of lease agreements in external trade is under review and the revision might affect both the balance of trade in goods and in services.
*According to Balance of Payments (BOP) and National Accounts (NA) standards.
Statistics
Trade in goods and services
Trade in goods