Macro note: 1.7% GDP growth in Q1

In real terms, the economy grew by 1.7% YOY in Q1. Domestic demand decreased by 2.8%, exports increased by 2.6% and imports decreased by 8.1%. The contribution of net foreign trade to GDP growth was positive by 4.4%. The current account surplus was ISK 35.1bn (1.2% of GDP) in Q1 2019 compared to an ISK 6.7bn (0.2% of GDP) surplus in Q1 2018. The increase was mainly due to exports of old fishing vessels and airplanes (WOW air sold 4 jets to Air Canada in January). The surplus excluding ships and airplanes was ISK 12.5bn (0.4% of GDP).

Macro note: 1.7% GDP growth in Q1