FX.co ★ Iceland Current Account Swings to Deficit in Q4

Iceland’s current account posted a deficit of ISK 38 billion in the fourth quarter of 2025, reversing from a surplus of ISK 20.9 billion in the same quarter a year earlier. The services surplus narrowed to ISK 49.4 billion from ISK 53.1 billion, while the secondary income deficit remained unchanged at ISK 15 billion compared with Q4 2024. By contrast, the goods deficit shrank significantly to ISK 73.4 billion from ISK 97.3 billion, and the primary income balance moved into a modest surplus of ISK 1 billion, after recording a deficit of ISK 27.1 billion a year before. Over the full year, Iceland’s current account deficit widened to ISK 177.7 billion from ISK 148.5 billion in 2024.