Economic statistics - 01.02.1986, Blaðsíða 4

of living index increased by 33.7 per cent over the
year. The cost of living increased by 32.4 per cent
between years, compared to 29.4 per cent in 1984
and 84.3 per cent in 1983.
Balance of payments
The balance of trade improved from a deficit of 0.5
per cent of GDP in 1984 to a near balance in 1985.
Figures available on the services account for three
quarters of the year indicate that the baiance on
goods and services improved in 1985, and that the
overall balance of payments will improve even more.
The balance of payments for the first three quarters is
shown below, along with figures for the same period
in 1984 valued at average exchange rates during the
first three quarters of 1985.
Balance of payments January-September
1984-1985
Millionsof krónur
Percen-
tage
change
19841) 19851984-85
transfer of produce loan financing from the Central
Bank to the deposit money banks. The Central Bank
could therefore decrease its short term foreign liabili-
ties, but the DMBs had to increase theirs atthe same
time.
It is estimated that gross long term funded debt
amounted to 65 billion krónur or 1.4 billion SDRs at
the end of the year, and increased by 124 million
SDRs during the year. Net external debt increased
slightly less and stood at 1.4 billion SDRs at the end
of the year, or 55 per cent of GDP compared to 53.3
per cent in 1984 and 49.7 per cent in 1983. Debt ser-
vice is estimated to have amounted to 20'/2 per cent
of export revenue, compared to 24.3 per cent in 1984
and 20.6 per cent in 1983.
No formal devaluation took place during the year.
The króna depreciated gradually during the year but
more in the second half. The average price of foreign
currency increased by 18.7 per cent over the year,
i.e. the króna depreciated by 15.8 per cent. Foreign
currency increased by 5.8 per cent to the end of
June, but by 12.1 per cent from then on until the end
of the year.
Merchandise exports, fob. 21394 24503 14.5
Merchandise imports, fob. 22243 24261 9.1
Th.o. general imports 19745 21483 8.8
Th.o. oil 3250 3744 15.2
Balanceof trade -849 242
Export of services 10636 12934 21.6
Importofservices 13336 16113 20.8
Balance on services account -2700 -3179
Balanceongoods
andservices -2937 -3549
New long term borrowing 6836 6398 -6.4
Amortization 3961 3122 -21.2
Net foreign borrowing 2875 3276 13.9
Shortterm capital movements -7 4844
Othercapital movements 644 929 44.3
Capital balance 3512 9049
Errors and omissions -1941 -1755
Overall balance of payments -1922 4366
Gross reserves, increase -1237 2208
Central bank short term
liabilities, decrease -685 2158
11 At average January to September 1985 exchange rates.
Gross reserves increased substantially during the
year or by 2.7 billion krónur, measured at end of 1985
exchange rates. Gross reserves stood at 8.8 billion
krónur at the end of the year, or 190 million SDRs,
which is equivalent to 3.7 months of general
merchandise imports. The net foreign exchange
position of the Central Bank improved even more, or
by 4.9 billion krónur, to end at 7.7 billion krónur. This
improvement is though partly to be explained by the
Treasury finances
The cash deficit of the Treasury (A-budget) was
one of the biggest in recent years. It amounted to
2V2 billion krónur, or 2.4 per cent of GNP, as can be
seen from the table below. The reasons for this
marked deterioration in Treasury finances from the
year before, are that revenue fell by 1.3 per cent of
GNP and expenditure increased by 1.9 per cent of
GNP. Revenue fell by nearly 3 per cent, but expendi-
ture increased by 10 per cent in real terms.
Summary of Treasury transactions
on a cash basis
Millionsof krónur 1983 1984 1985
1 Revenue 15100 20747 26889
2 Expenditure 16598 19964 29270
3 Revenue balance -1498 783 -2381
4 Netlending 178 -598 -498
5 Financial balance -1320 185 -2879
Financing:
6 Netborrowing outside Central B 220 809 1432
7 Miscellaneous -160 -355 -1032
8 Cash balance -1260 639 -2479
81 With Central Bank -1260 446 -2494
82 Cash and deposits - 193 15
Percentage ratios of GNP:
1 Revenue 25.3 26.9 25.6
2 Expenditure 27.8 25.9 27.8
3 Revenuebalance -2.5 1.0 -2.3
5 Financial balance -2.2 0.2 -2.7
8 Cash balance -2.1 0.8 -2.4