Please note that this press release was updated 28 February 2023. Trade in the use of intellectual property and related trade for the period 2018-2022 have been revised which affects previously published figures on external trade in services.
The value of exported services in the fourth quarter of 2022 is estimated at 178.5 billion ISK while the value of imported services is estimated at 154.3 billion ISK. Therefore, the surplus in the balance of trade in services is estimated at 24.1 billion ISK compared with a surplus of 6.3 billion ISK for the same period the year before. For the period January 2021 to December 2022, the surplus of balance of trade in services is estimated at 186.5 billion ISK compared with a surplus of 76 billion ISK in the 12 months prior.
Value of exports of services increased by 66% in a 12-month comparison
The total value of exports of services in the fourth quarter of 2022 increased by 48.6 billion ISK, or 37%, from the same period the year before, at current rates of exchange. The total exported value of travel in the fourth quarter of 2022 continue to increase compared with the same period the year before, or by 22.9 billion ISK or 50%. Exported value of transport services increased by 17.3 billion ISK, or 48% compared with the same period the previous year. The exported value of other business services increased by 3.7 billion ISK, or by 20%.
For the period January 2022 to December 2022, the total value of exports of services was 738.2 billion ISK and increased by 293.1 billion ISK, or 66%, compared with the 12 months prior at current rates of exchange. Increase in exported value of travel in the same period was 163.9 billion ISK and almost doubled compared with the 12 months prior. There was also an increase in the exported value of transport services by 86% and the same goes for the exported value of telecommunications, computer and information services which increased by 19%.
Value of imports of services increased by 49% in a 12-month comparison
The total value of imports of services in the fourth quarter of 2022 increased by 30.7 billion ISK or 25%, from the same period the year before, at current rates of exchange. The value of imported travel increased considerably, by 15.8 billion ISK or 41%, compared with the fourth quarter of 2021. The value of imported transportation services also increased considerably between years, by 6 billion ISK or 25%. The same goes for the value of imports of other business services which increased by 19% compared with the same period last year.
For the period January 2022 to December 2022, the total value of imports of services was 551.7 billion ISK and increased by 182.6 billion ISK, or 49%, compared with the 12 months prior at current rates of exchange. The main reason for this increase in the value of imports of services is the increase in imported value of travel which more than doubled compared with the 12 months prior. There was also an increase in the imported value of transportation by 44% and an increase in the imported value of other business services by 26%.
Deficit in balance of trade in goods and services 27.5 billion in the last 12 months
The value of exported goods in BOP* in the fourth quarter of 2022 is estimated 259 billion ISK and the value of imported goods 344.9 billion ISK. Hence, a deficit in the balance of trade in goods in BOP is estimated at 85.8 billion ISK.
The total export of trade in goods and services is therefore estimated 437.5 billion ISK in the fourth quarter of 2022 compared with 351.9 billion ISK in the same period the year before. Import of trade in goods and services is estimated at 499.2 billion ISK in the fourth quarter of 2022 compared with 384.1 billion ISK in the same period in the previous year. The deficit of trade in goods and services is estimated at 61.7 billion ISK in the fourth quarter of 2022 compared with a deficit of 32.2 billion ISK in the fourth quarter the year before.
For the period January 2021 to December 2022, the deficit in the balance of trade in goods and services is estimated at 27.5 billion ISK compared with a deficit of 66.3 billion ISK in the 12 months prior.
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 2022. In December 2022, total exports of trade in goods and services is estimated at 156.7 billion ISK and total imports of trade in goods and services is estimated at 155.5 billion ISK. The surplus of balance of trade in goods and services is therefore estimated at 1.2 billion ISK in December 2022.
Revision of previously published figures The treatment of aircraft lease agreements in national accounts and external trade has been under review at Statistic Iceland for some time after changes were made in the treatment of these lease agreements in the publication of national accounts in August 2021. Advice was sought from the European statistical office, Eurostat, regarding methodological issues. It was Eurostat's conclusion that the distinction between financial and operational leases should take into consideration a so-called cost ratio which is determined by the market value of the asset and the accumulated rental payments over the rental period. In cases where this ratio is relatively low, an operational lease was suggested, while a high ratio would suggest a financial lease.
In light of this, the treatment of lease agreements in transportation has been reset from what it is was before the changes made in August 2021. The change in treatment of the lease agreements, for the period 2018-2022, has the effect that imports of goods and capital formation decreases, but imports of services increases.
Trade in the use of intellectual property in external trade in services has been of considerable size for the last few years, raising questions if these transactions meet the criteria of national accounts and external trade for trade transactions. As the matter is still under review at Statistics Iceland, it has been decided not to include these transactions in the external trade figures for the time being. The effect on quarterly trade balances is either positive or negative. For the period 2018-2022, the impact is negative by roughly 90 billion ISK.
*According to Balance of Payments (BOP) and National Accounts (NA) standards.
Statistics
Trade in goods and services
Trade in services