• Statistical Series
• 08. March 2010
• Vol 95, Issue 17
• ISSN: 1670-4665



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In 2009, the financial balance of the general government was 137 billion ISK in deficit or 9.1% of GDP, which can be compared with a deficit of 13.6% of GDP for 2008 (or 0.6% of GDP excluding the 192 billion ISK debt assumption) and a surplus of 5.4% for 2007. This adverse development in 2009 can mainly be explained by a 31 billion ISK decrease in tax revenue, a 52 billion ISK increase in interest payments, a 33 billion ISK increase in social contributions (due to e.g. higher unemployment) and a 24 billion ISK increase in government final consumption (despite a 3% decrease in value terms).