The fiscal situation of the general government in Iceland is looking good, the latest figures from Statistics Iceland indicate. The financial balance of the general government, defined as the central government, the social security funds and local governments, was positive to the tune of 17.6 billion ISK (176 million USD/157 million EUR) during the first quarter of 2017.
This amounts to a surplus of 3.1% of quarterly GDP and 6.7% of total government revenue.
Dramatic turnaround compared to last year
The surplus represents a significant turnaround compared to the first quarter of last year. During Q1 2016 the surplus was more than twenty times larger, or 370.7 billion ISK (3.7 billion USD/3.3 billon EUR). However, most of the large surplus in the first quarter of 2016 was caused by the stability contributions of the estates of the Icelandic banks which collapsed in 2008. In the absence of those contributions the general government would have run a deficit in the first quarter of 2016 amounting to 2.5% of quarterly GDP.
Read more: General government surplus in 2016 amounted to 17.2% of GDP
Statistics Iceland has also revised its previous estimate for the general government surplus in 2016, down from 17.2% of GDP to 12.9% of GDP.
The fiscal situation of the general government in Iceland is looking good, the latest figures from Statistics Iceland indicate. The financial balance of the general government, defined as the central government, the social security funds and local governments, was positive to the tune of 17.6 billion ISK (176 million USD/157 million EUR) during the first quarter of 2017.
This amounts to a surplus of 3.1% of quarterly GDP and 6.7% of total government revenue.
Dramatic turnaround compared to last year
The surplus represents a significant turnaround compared to the first quarter of last year. During Q1 2016 the surplus was more than twenty times larger, or 370.7 billion ISK (3.7 billion USD/3.3 billon EUR). However, most of the large surplus in the first quarter of 2016 was caused by the stability contributions of the estates of the Icelandic banks which collapsed in 2008. In the absence of those contributions the general government would have run a deficit in the first quarter of 2016 amounting to 2.5% of quarterly GDP.
Read more: General government surplus in 2016 amounted to 17.2% of GDP
Statistics Iceland has also revised its previous estimate for the general government surplus in 2016, down from 17.2% of GDP to 12.9% of GDP.
