The economy in Iceland continued to recover in 2013，for which the main driving force came from foreign trade. The budget deficit in Iceland was put in a declining path，but the government debt ratio remained at a high level. On April 15 2013，China signed a free trade agreement with Iceland，the first of such kind with a European country. On April 27 2013，the parliamentary election was held in Iceland，following which the Independence Party and Progressive Party formed a new coalition government.