The revised annual national accounts for 2013 show a 3.5% increase in Gross Domestic Product (GDP) in real terms. The economic growth in 2013 is mainly driven by a large surplus in the balance of trade while the domestic final expendi-ture decreased slightly or by 0.3%.
Household and government final consumption increased by 0.8% respectively while gross fixed capital formation decreased by 2.2%. At the same time, exports grew by 6.9% and imports by 0.4%. This resulted in a 156 billion ISK surplus in the balance of trade in goods and services in 2013.
The increased surplus in the balance of trade in 2013 and much lower deficit in primary income from abroad according to figures from the Central bank of Iceland resulted in a large current account surplus, 121 billion ISK or 6.5% of GDP, compared to current account deficit of 60 billion ISK or 3.4% of GDP in 2012. This is the highest surplus recorded since the compilation of national accounts started in Iceland in 1945 and only in six cases since 1980 has this balance actually been positive.
During 2013 the terms of trade deteriorated by 1.1% of the GDP of the previous year having a similar impact on Gross National Income (GNI). Despite this development the improvements in the current account balance led to 11.2% growth in GNI.
The results published here are according to the ESA2010 standard. At present the revisions have been calculated backwards to 1997 and they raise the level of GDP by 3.6% per year on average. The level raise in year 2012 was 4.4%. With few exceptions the impact on the economic growth is marginal or 0.3% on average per year. In 2012 the impact on the economic growth was -0.3%.
Further information about the impact of the ESA201 implementation and other revisions made, together with comparison with other countries results, will be published when available.