According to revised national accounts for 2016 the GDP of Iceland grew 0.2 percentage points more last year than initially believed. The GDP grew by 7.4%, rather than the 7.2% initially believed. A major driver of economic growth was a 8.9% increase in gross domestic final expenditure.
Read more: Report: Icelandic economic growth tops all but one OECD country in 2016: GDP grew 7.2%
Household final consumption increased last year by 7.1% and government final consumption by just 1.9%. Gross fixed capital formation increased by 22.8%, which is the largest increase in Gross fixed capital formation since 2006. Capital formation consumed 21.3% of GDP in 2016, which is close to the historical average. Capital formation was primarily supported by a considerable increase of 26.4% in the private business sector, as well as in residential construction, which saw a 29.4% increase in capital formation in 2016.
The primary drag on growth in 2016 was the negative balance of trade in goods. Exports grew in 2016 by 10.9% while imports grew by 14.5%. Despite this Iceland enjoyed a strong surplus in services. Service exports amounted to 26.8% of GDP and outweighed the exports of goods for the first time in the history of Icelandic National Accounts dating back to 1945. This resulted in a 155.4 billion ISK surplus in the balance of trade in goods and services in 2016.
According to revised national accounts for 2016 the GDP of Iceland grew 0.2 percentage points more last year than initially believed. The GDP grew by 7.4%, rather than the 7.2% initially believed. A major driver of economic growth was a 8.9% increase in gross domestic final expenditure.
Read more: Report: Icelandic economic growth tops all but one OECD country in 2016: GDP grew 7.2%
Household final consumption increased last year by 7.1% and government final consumption by just 1.9%. Gross fixed capital formation increased by 22.8%, which is the largest increase in Gross fixed capital formation since 2006. Capital formation consumed 21.3% of GDP in 2016, which is close to the historical average. Capital formation was primarily supported by a considerable increase of 26.4% in the private business sector, as well as in residential construction, which saw a 29.4% increase in capital formation in 2016.
The primary drag on growth in 2016 was the negative balance of trade in goods. Exports grew in 2016 by 10.9% while imports grew by 14.5%. Despite this Iceland enjoyed a strong surplus in services. Service exports amounted to 26.8% of GDP and outweighed the exports of goods for the first time in the history of Icelandic National Accounts dating back to 1945. This resulted in a 155.4 billion ISK surplus in the balance of trade in goods and services in 2016.
