Settled by Norwegian and Celtic (Scottish and Irish) immigrants during the late 9th and 10th centuries A.D., Iceland boasts the world's oldest functioning legislative assembly, the Althing, established in 930. Independent for over 300 years, Iceland was subsequently ruled by Norway and Denmark. Fallout from the Askja volcano of 1875 devastated the Icelandic economy and caused widespread famine. Over the next quarter century, 20% of the island's population emigrated, mostly to Canada and the US. Limited home rule from Denmark was granted in 1874 and complete independence attained in 1944. Literacy, longevity, income, and social cohesion are first-rate by world standards.
Location
Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the UK
Geographic coordinates
65 00 N, 18 00 W
Map references
Arctic Region
Area
total
103,000 sq km
land
100,250 sq km
water
2,750 sq km
Area - comparative
slightly smaller than Kentucky
Land boundaries
0 km
Coastline
4,970 km
Maritime claims
territorial sea
12 nm
exclusive economic zone
200 nm
continental shelf
200 nm or to the edge of the continental margin
Climate
temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers
Terrain
mostly plateau interspersed with mountain peaks, icefields; coast deeply indented by bays and fiords
Elevation extremes
lowest point
Atlantic Ocean 0 m
highest point
Hvannadalshnukur 2,110 m (at Vatnajokull glacier)
Natural resources
fish, hydropower, geothermal power, diatomite
Land use
arable land
0.07%
permanent crops
0%
other
99.93% (2005)
Irrigated land
NA
Natural hazards
earthquakes and volcanic activity
Environment - current issues
water pollution from fertilizer runoff; inadequate wastewater treatment
Environment - international agreements
party to
Air Pollution, Air Pollution-Persistent Organic Pollutants, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Kyoto Protocol, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Transboundary Air Pollution, Wetlands, Whaling
signed, but not ratified
Environmental Modification, Marine Life Conservation
Geography - note
strategic location between Greenland and Europe; westernmost European country; Reykjavik is the northernmost national capital in the world; more land covered by glaciers than in all of continental Europe
Population
301,931 (July 2007 est.)
Age structure
0-14 years
21.4% (male 32,759/female 31,845)
15-64 years
66.8% (male 102,161/female 99,411)
65 years and over
11.8% (male 16,162/female 19,593) (2007 est.)
Median age
total
34.5 years
male
34 years
female
35 years (2007 est.)
Population growth rate
0.824% (2007 est.)
Birth rate
13.57 births/1,000 population (2007 est.)
Death rate
6.77 deaths/1,000 population (2007 est.)
Net migration rate
1.43 migrant(s)/1,000 population (2007 est.)
Sex ratio
at birth
1.04 male(s)/female
under 15 years
1.029 male(s)/female
15-64 years
1.028 male(s)/female
65 years and over
0.825 male(s)/female
total population
1.002 male(s)/female (2007 est.)
Infant mortality rate
total
3.27 deaths/1,000 live births
male
3.41 deaths/1,000 live births
female
3.12 deaths/1,000 live births (2007 est.)
Life expectancy at birth
total population
80.43 years
male
78.33 years
female
82.62 years (2007 est.)
Total fertility rate
1.91 children born/woman (2007 est.)
HIV/AIDS - adult prevalence rate
0.2% (2001 est.)
HIV/AIDS - people living with HIV/AIDS
220 (2001 est.)
HIV/AIDS - deaths
less than 100 (2003 est.)
Nationality
noun
Icelander(s)
adjective
Icelandic
Ethnic groups
homogeneous mixture of descendants of Norse and Celts 94%, population of foreign origin 6%
Religions
Lutheran Church of Iceland 85.5%, Reykjavik Free Church 2.1%, Roman Catholic Church 2%, Hafnarfjorour Free Church 1.5%, other Christian 2.7%, other or unspecified 3.8%, unaffiliated 2.4% (2004)
Languages
Icelandic, English, Nordic languages, German widely spoken
Literacy
definition
age 15 and over can read and write
total population
99%
male
99%
female
99% (2003 est.)
Country name
conventional long form
Republic of Iceland
conventional short form
Iceland
local long form
Lydveldid Island
local short form
Island
Government type
constitutional republic
Capital
name
Reykjavik
geographic coordinates
64 09 N, 21 57 W
time difference
UTC (5 hours ahead of Washington, DC during Standard Time)
1 December 1918 (became a sovereign state under the Danish Crown); 17 June 1944 (from Denmark)
National holiday
Independence Day, 17 June (1944)
Constitution
16 June 1944, effective 17 June 1944; amended many times
Legal system
civil law system based on Danish law; has not accepted compulsory ICJ jurisdiction
Suffrage
18 years of age; universal
Executive branch
chief of state
President Olafur Ragnar GRIMSSON (since 1 August 1996)
head of government
Prime Minister Geir H. HAARDE (since 7 June 2006)
cabinet
Cabinet appointed by the prime minister
elections
president, largely a ceremonial post, is elected by popular vote for a four-year term (no term limits); election last held 26 June 2004 (next to be held in June 2008); following legislative elections, the leader of the majority party or the leader of the majority coalition is usually the prime minister
unicameral Parliament or Althing (63 seats; members are elected by popular vote to serve four-year terms)
elections: last held 12 May 2007 (next to be held by May 2011)
election results: percent of vote by party - Independence Party 36.6%, Social Democratic Alliance 26.8%, Progressive Party 11.7%, Left-Green Movement 14.3%, Liberal Party 7.3%, other 3.3%; seats by party - Independence Party 25, Social Democratic Alliance 18, Progressive Party 7, Left-Green Alliance 9, Liberal Party 4
Judicial branch
Supreme Court or Haestirettur (justices are appointed for life by the Minister of Justice); eight district courts (justices are appointed for life by the Minister of Justice)
Political parties and leaders
Independence Party or IP [Geir H. HAARDE]; Left-Green Movement or LGM [Steingrimur SIGFUSSON]; Liberal Party or LP [Gudjon KRISTJANSSON]; Progressive Party or PP [Jon SIGURDSSON]; Social Democratic Alliance or SDA [Ingibjorg Solrun GISLADOTTIR] (includes People's Alliance or PA, Social Democratic Party or SDP, Women's List)
Suite 1200, 1156 15th Street NW, Washington, DC 20005-1704
telephone
[1] (202) 265-6653
FAX
[1] (202) 265-6656
consulate(s) general
New York
Diplomatic representation from the US
chief of mission
Ambassador Carol VAN VOORST
embassy
Laufasvegur 21, 101 Reykjavik
mailing address
US Department of State, 5640 Reykjavik Place, Washington, D.C. 20521-5640
telephone
[354] 562-9100
FAX
[354] 562-9118
Flag description
blue with a red cross outlined in white extending to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)
Economy - overview
Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system (including generous housing subsidies), low unemployment, and remarkably even distribution of income. In the absence of other natural resources (except for abundant geothermal power), the economy depends heavily on the fishing industry, which provides nearly 70% of export earnings and employs 6% of the work force. The economy remains sensitive to declining fish stocks as well as to fluctuations in world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. Government policies include reducing the current account deficit, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, and diversifying the economy. The government remains opposed to EU membership, primarily because of Icelanders' concern about losing control over their fishing resources. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, and new developments in software production, biotechnology, and financial services are taking place. The tourism sector is also expanding, with the recent trends in ecotourism and whale watching. Since 2000 growth has varied from -1% in 2002 to 8% in 2004. The 2006 closure of the US military base at Keflavik had very little impact on the national economy; Iceland's low unemployment rate aided former base employees in finding alternate employment.
GDP (purchasing power parity)
$11.38 billion (2006 est.)
GDP (official exchange rate)
$13.71 billion (2006 est.)
GDP - real growth rate
2.6% (2006 est.)
GDP - per capita (PPP)
$38,000 (2006 est.)
GDP - composition by sector
agriculture
8.4%
industry
15.6%
services
76% (2006 est.)
Labor force
173,000 (2006 est.)
Labor force - by occupation
agriculture
5.1%
industry
23%
services
71.4% (2005)
Unemployment rate
1.3% (2006 est.)
Population below poverty line
NA%
Household income or consumption by percentage share
lowest 10%
NA%
highest 10%
NA%
Inflation rate (consumer prices)
6.8% (2006 est.)
Investment (gross fixed)
31.4% of GDP (2006 est.)
Budget
revenues
$7.345 billion
expenditures
$6.655 billion; including capital expenditures of $467 million (2006 est.)
Public debt
23.5% of GDP (2006 est.)
Agriculture - products
Industries
fish processing; aluminum smelting, ferrosilicon production; geothermal power, tourism
Industrial production growth rate
5% (2006 est.)
Electricity - production
8.474 billion kWh (2004)
Electricity - production by source
fossil fuel
0.1%
hydro
82.5%
nuclear
0%
other
17.5% (geothermal) (2001)
Electricity - consumption
7.881 billion kWh (2004)
Electricity - exports
0 kWh (2004)
Electricity - imports
0 kWh (2004)
Oil - production
0 bbl/day (2004 est.)
Oil - consumption
20,560 bbl/day (2004 est.)
Oil - exports
0 bbl/day (2001)
Oil - imports
15,470 bbl/day (2001)
Natural gas - production
0 cu m (2004 est.)
Natural gas - consumption
0 cu m (2004 est.)
Current account balance
-$2.932 billion (2006 est.)
Exports
$3.587 billion f.o.b. (2006 est.)
Exports - commodities
fish and fish products 70%, aluminum, animal products, ferrosilicon, diatomite
Exports - partners
Netherlands 17.6%, UK 16.4%, Germany 15.9%, Spain 6.8%, US 6.6%, Norway 4.2% (2006)
Imports
$5.189 billion (2006 est.)
Imports - commodities
machinery and equipment, petroleum products, foodstuffs, textiles
Imports - partners
Germany 13%, US 9%, Norway 7.6%, Sweden 7.6%, Denmark 6.6%, UK 5.6%, Netherlands 5.2%, China 4.9%, Japan 4.4%, France 4.2% (2006)
Reserves of foreign exchange and gold
$1.018 billion (August 2006 est.)
Debt - external
$3.073 billion (2002)
Economic aid - donor
$6.7 million (2004)
Currency (code)
Icelandic krona (ISK)
Currency code
ISK
Exchange rates
Icelandic kronur per US dollar - 70.195 (2006), 62.982 (2005), 70.192 (2004), 76.709 (2003), 91.662 (2002)
Fiscal year
calendar year
Telephones - main lines in use
193,900 (2005)
Telephones - mobile cellular
304,000 (2005)
Telephone system
general assessment
extensive domestic service
domestic
the trunk network consists of coaxial and fiber-optic cables and microwave radio relay links
international
country code - 354; satellite earth stations - 2 Intelsat (Atlantic Ocean), 1 Inmarsat (Atlantic and Indian Ocean regions); note - Iceland shares the Inmarsat earth station with the other Nordic countries (Denmark, Finland, Norway, and Sweden)
Radio broadcast stations
AM 3, FM about 70 (including repeaters), shortwave 1 (1998)
Radios
260,000 (1997)
Television broadcast stations
14 (plus 156 repeaters) (1997)
Televisions
98,000 (1997)
Internet country code
.is
Internet hosts
212,897 (2006)
Internet Service Providers (ISPs)
20 (2001)
Internet users
258,000 (2005)
Airports
98 (2006)
Airports - with paved runways
total
5
over 3,047 m
1
1,524 to 2,437 m
3
914 to 1,523 m
1 (2006)
Airports - with unpaved runways
total
93
1,524 to 2,437 m
3
914 to 1,523 m
29
under 914 m
61 (2006)
Roadways
total
13,028 km
paved/oiled gravel
4,241 km (does not include urban roads)
unpaved
8,787 km (2005)
Merchant marine
total
1 ship (1000 GRT or over) 3,354 GRT/480 DWT
by type
passenger/cargo 1
registered in other countries
34 (Antigua and Barbuda 8, Bahamas 1, Belize 2, Faroe Islands 4, Gibraltar 1, Malta 4, Norway 4, Saint Vincent and the Grenadines 10) (2006)
no regular armed forces; Icelandic National Police, Icelandic Coast Guard (Islenska Landhelgisgaeslan) subordinate to Ministry of Justice, Icelandic Crisis Response Unit (2006)
Manpower available for military service
males age 18-49: 69,038 (2005 est.)
Manpower fit for military service
males age 18-49: 56,777 (2005 est.)
Military expenditures - percent of GDP
0% (2005 est.)
Military - note
under a 1951 bilateral agreement, Iceland's defense was provided by a US-manned Icelandic Defense Force (IDF) headquartered in Keflavik; in October 2006, all US military forces in Iceland were withdrawn; nonetheless, the US and Iceland signed a Joint Understanding to strengthen their bilateral defense relationship, including regular security consultations, military communications in the event of national emergencies, annual bilateral exercises on Icelandic territory, and future bilateral and NATO support to four Iceland Air Defense System (IADS) radar sites
Disputes - international
Iceland, the UK, and Ireland dispute Denmark's claim that the Faroe Islands' continental shelf extends beyond 200 nm
