Iceland faced a significant trade deficit of 303 billion ISK in 2022, as the value of imported goods surpassed that of exported goods. According to the latest data, the total value of exported goods amounted to 1,001.6 billion ISK fob, while the value of imported goods reached 1,304.6 billion ISK cif (926.5 billion ISK fob).
Compared to the previous year, the trade deficit increased from 214.7 billion ISK in 2021 to 303.0 billion ISK in 2022, reflecting a concerning trend for Iceland’s trade balance.
One notable aspect is the substantial growth in the value of manufacturing products exported from Iceland, which recorded a remarkable increase of 43.9% compared to 2021. Exports of aluminium and aluminium products accounted for the largest share, contributing 40.2% of the total exports. Marine products also played a significant role, comprising 34.9% of the total exports and experiencing a 17.9% increase in value. Among marine products, fresh fish and frozen fish fillets were the primary contributors.
In terms of trading partners, the Netherlands, the United Kingdom, and the United States emerged as the largest recipients of Icelandic exports, with EEA countries receiving 71% of the total exports.
On the import side, all categories experienced an increase, leading to a substantial rise in the total value of imports in 2022. Import of goods surged by 33.5%, amounting to 327.5 billion ISK more than in the previous year. Fuel and industrial supplies were the primary contributors to this growth. The largest import categories were industrial supplies, accounting for 27.8% of imports, followed by capital goods at 22.6%.
Norway, China, and Germany emerged as the key trading partners for Icelandic imports in 2022, with EEA countries supplying over 57% of the total imported goods.
These trade figures highlight the challenges faced by Iceland’s economy in maintaining a balanced trade position. Efforts to boost export competitiveness and manage import levels will be crucial for addressing the trade deficit and ensuring long-term economic stability for the country.