The preliminary annual national accounts for 2013 show a 3.3% increase in Gross Domestic Product (GDP) in real terms. In 2012, GDP increased by 1.5% and by 2.7% in 2011. The economic growth in 2013 is mainly driven by a large surplus in the balance of trade while the domestic final expenditure increased modestly or by 0.1%.
Household final consumption increased by 1.2% and government final consumption by 1.3% while gross fixed capital formation decreased by 3.4%. At the same time, exports grew by 5.3% and imports decreased slightly or by 0.1%. This resulted 132 billion ISK in a surplus in the balance of trade in goods and services in 2013 compared to 104 billion ISK in 2012.
The decrease in gross fixed capital formation is mostly due to less imports of ships and aircraft, that only have a marginal impact on GDP. Excluding ships and aircraft, gross fixed capital for-mation increased by 5.8% in 2013.
The increased surplus in the balance of trade in 2013 and much lower deficit in primary income from abroad according to preliminary figures from the Central bank of Iceland resulted in a large current account surplus, 82 billion ISK or 4.6% of GDP, compared to current account deficit of 80 billion ISK or 4.7% 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.
Source: Statistics Iceland
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