Please note that this press release was corrected 7 March 2023 at 13:05. The balance of trade in goods and value of exported goods were corrected.
The value of exported goods from Iceland amounted to 73.8 billion ISK fob in February 2023 and the value of imported goods 99.7 billion ISK cif (93.6 billion ISK fob) according to preliminary figures. Thus, there was a trade deficit, calculated on fob/cif value, of 25.9 billion ISK as compared with a trade deficit of 15.1 billion ISK in February 2022 at current rates of exchange.
The trade balance in February 2023 was therefore 10.8 billion ISK less favourable than at the same time last year. For the last twelve months the deficit in balance of trade in goods was 323.2 billion ISK or 104.0 billion ISK less favourable than during the previous twelve months.
Value of exported goods increased by 26.3% for the last twelve months
The value of exported goods in February was 7.6 billion ISK (11.5%) higher than in February 2022, increasing from 66.2 billion ISK to 73.8 billion ISK.
For the last twelve months the total value of exported goods was 1,012.6 billion ISK or 211,1 billion ISK higher (26.3%) than during the previous twelve months at current rates of exchange. Manufacturing products contributed 57% of the total exports, increasing by 34.5%. Marine products contributed 35% of total exported goods and increased by 16.3% from the previous twelve months.
Value of imports increased by 30.9% last twelve months
The value of imports of goods was 99.7 billion ISK in February 2023 compared with 81.4 billion ISK in February 2022. The increase was thus 18.4 billion ISK from the February 2022 (22.6%). The value of industrial supplies was 28.1 billion ISK and increased by 3.7 billion ISK (15%), the value of capital goods (except for transport) was 25.3 billion ISK and increased by 2.9 billion (13%) and the value of fuels and lubricants was 10.9 billion ISK and increased by 3 billion ISK (37.9%) from February 2022.
For the last twelve months the total value of imports of goods was 1,335.8 billion ISK, 315.1 billion ISK higher (30.9%) than during the previous twelve months. The biggest difference is increased value of fuels, industrial supplies and capital goods.
The average value of the exchange rate index1 for the twelve months period was 192, indicating a 1.2% stronger rate of exchange than during the previous twelve months when the average exchange rate index was 194.4. The exchange rate weakened by 7% in February 2023 (201.3) compared with February 2022 (188.2).
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 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.
Please note that the above numbers are preliminary and will be updated at the end of the month. Corrections and additional data can significantly affect the data. Data for past months in tables has been updated.
1Source: Central Bank of Iceland - Exchange rate index (Average exchange rate index - trade basket narrow).