The value of exported goods in BOP* in the second quarter of 2020 was estimated 149.2 billion ISK and the value of imported goods 158.4 billion ISK. Hence, a deficit of balance of trade in goods in BOP was estimated 9.2 billion ISK. In the same quarter, export of services was estimated 66.4 billion ISK and import of services was estimated 62.6 billion ISK. Hence, the surplus of balance of trade in services was estimated 3.7 billion ISK.

The total export of trade in goods and services was therefore estimated 215.6 billion ISK in the second quarter of 2020 compared with 328.2 billion in the same period the year before. Import of trade in goods and services was estimated 221.0 billion ISK in the second quarter of 2020 compared with 319.5 billion ISK in the same period the year before. The deficit of trade in goods and services was estimated 5.4 billion ISK in the second quarter of 2020 compared with a surplus of 8.7 billion ISK in the second quarter the year before.

Export value of transport and travel decreases considerable between years
The total value of exports of services in the second quarter of 2020 decreased by 99.0 billion ISK (59.9%) from the same period the year before, at current rates of exchange. The total exported value of travel in the second quarter of 2020 was 7.1 billion and decreased by 74.8 billion ISK (91.3%) compared with the same period the year before at current exchange rates. Exported value of transport services also decreased considerable in the second quarter of 2020 or by 31.2 billion ISK (61.5%) compared with the same period last year. The heavy decrease in the value of exports of passenger transport by air is the main reason behind the decrease in transport services.

In the second quarter of 2020, the value of exports of services to Europe was 42.8 billion ISK, or 64.5% of total export value. Thereof, export of services to the United Kingdom was 9.0 billion ISK, 13.6 % of total export value, and export of services to Germany was 8.3 billion ISK, 12.5 % of total export value. Export of services to the United States was 13.1 billion ISK or 19.7% of total export value for the same period.

Value of imports of services also decreases considerably
The total value of imports of services in the second quarter of 2020 decreased by 50.6 billion ISK (44.7%) from the same period the year before at current rates of exchange. The value of imported travel services was 8.9 billion ISK and decreased by 42.8 billion (82.7%) at current rates of exchange. The value of imported transportation services also decreased considerable between years, by 7.3 billion ISK (32.5%).

It is worth noting that cross-border sales volume on Icelandic credit cards decreased considerably less than the imported travel services. This is because, although the turnover by Icelandic credit cards used on travels abroad decreases dramatically, the turnover due to goods and other services (e.g. television subscriptions and computer software) purchased on-line increases or remains the same.

In the second quarter of 2020, the value of imports of services from Europe was 49.1 billion ISK or 78.5% of total imports of services. Thereof, services import from the Netherlands was 7.5 billion or 11.9% of total imports and services import from the United Kingdom was 7.2 billion or 11.5% of total imports. Import of services form the United States was 8.0 billion ISK or 12.8% of total imports for the same period.

Monthly trade in goods and services
Parallel to this publication, Statistics Iceland updates data for monthly trade in goods and services for the second quarter of 2020. In June 2020, total export of trade in goods and services was estimated 73.9 billion ISK and total import of trade in goods and services was estimated 83.2 billion ISK. The deficit of balance of trade in goods and services was therefore estimated 9.3 billion ISK in June 2020.

Revision forthcoming on the External Trade data
The National Accounts are implementing a new procedure regarding data revision (Benchmark revision) as mentioned in a press release on 28 February 2020. As the External Trade data is used in the calculation of National Accounts, consistency is desirable and therefore the same procedure will be implemented in the calculation of trade in goods and services. In addition to the traditional publications of preliminary and final data, the procedure of revisions for trade in services will be as follows: Before the publication of trade in services for the 3rd quarter, planned for 26 November 2020, time series will be opened and revised as necessary. Changes due to improved data, newer or revised estimation methods or classifications, will be implemented as necessary. Next benchmark revision is planned for 2024 and every fifth year thereafter.

*According to Balance of Payments (BOP) and National Accounts (NA) standards.

Statistics

Share