FX.co ★ Iceland Current Account Deficit Narrows in Q1

Iceland’s current account deficit narrowed sharply to ISK 32.1 billion in the first quarter of 2026, down from ISK 70.2 billion in the same period a year earlier. The services surplus increased to ISK 29.3 billion from ISK 17.8 billion, while the goods deficit contracted significantly to ISK 23.4 billion from ISK 84.4 billion in Q1 2025. In contrast, the primary income balance weakened, swinging to a deficit of ISK 20.6 billion from a surplus of ISK 9.1 billion, and the secondary income deficit widened to ISK 17.3 billion compared with ISK 12.8 billion a year before.