2008 Edition

Background

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.

Area

total: 103,000 sq km land: 100,250 sq km water: 2,750 sq km

Area - comparative

slightly smaller than Kentucky

Climate

temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers

Coastline

4,970 km

Elevation extremes

lowest point: Atlantic Ocean 0 m highest point: Hvannadalshnukur 2,110 m (at Vatnajokull glacier)

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

Freshwater withdrawal (domestic/industrial/agricultural)

total: 0.17 cu km/yr (34%/66%/0%) per capita: 567 cu m/yr (2003)

Geographic coordinates

65 00 N, 18 00 W

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

Irrigated land

NA

Land boundaries

0 km

Land use

arable land: 0.07% permanent crops: 0% other: 99.93% (2005)

Location

Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the UK

Map references

Arctic Region

Maritime claims

territorial sea: 12 nm exclusive economic zone: 200 nm continental shelf: 200 nm or to the edge of the continental margin

Natural hazards

earthquakes and volcanic activity

Natural resources

fish, hydropower, geothermal power, diatomite

Terrain

mostly plateau interspersed with mountain peaks, icefields; coast deeply indented by bays and fiords

Total renewable water resources

170 cu km (2005)

Age structure

0-14 years: 21% (male 32,500/female 31,566) 15-64 years: 67% (male 103,231/female 100,545) 65 years and over: 12% (male 16,530/female 19,995) (2008 est.)

Birth rate

13.5 births/1,000 population (2008 est.)

Death rate

6.81 deaths/1,000 population (2008 est.)

Education expenditures

7.6% of GDP (2004)

Ethnic groups

homogeneous mixture of descendants of Norse and Celts 94%, population of foreign origin 6%

HIV/AIDS - adult prevalence rate

0.2% (2001 est.)

HIV/AIDS - deaths

fewer than 100 (2003 est.)

HIV/AIDS - people living with HIV/AIDS

220 (2001 est.)

Infant mortality rate

total: 3.25 deaths/1,000 live births male: 3.39 deaths/1,000 live births female: 3.1 deaths/1,000 live births (2008 est.)

Languages

Icelandic, English, Nordic languages, German widely spoken

Life expectancy at birth

total population: 80.55 years male: 78.43 years female: 82.76 years (2008 est.)

Literacy

definition: age 15 and over can read and write total population: 99% male: 99% female: 99% (2003 est.)

Median age

total: 34.8 years male: 34.4 years female: 35.3 years (2008 est.)

Nationality

noun: Icelander(s) adjective: Icelandic

Net migration rate

1.13 migrant(s)/1,000 population (2008 est.)

Population

304,367 (July 2008 est.)

Population growth rate

0.783% (2008 est.)

Religions

Lutheran Church of Iceland 82.1%, Roman Catholic Church 2.4%, Reykjavik Free Church 2.3%, Hafnarfjorour Free Church 1.6%, other Christian 2.8%, other religions 0.9%, unaffiliated 2.6%, other or unspecified 5.5% (2006 est.)

School life expectancy (primary to tertiary education)

total: 18 years male: 17 years female: 19 years (2006)

Sex ratio

at birth: 1.04 male(s)/female under 15 years: 1.03 male(s)/female 15-64 years: 1.03 male(s)/female 65 years and over: 0.83 male(s)/female total population: 1 male(s)/female (2008 est.)

Total fertility rate

1.91 children born/woman (2008 est.)

Administrative divisions

8 regions; Austurland, Hofudhborgarsvaedhi, Nordhurland Eystra, Nordhurland Vestra, Sudhurland, Sudhurnes, Vestfirdhir, Vesturland

Capital

name: Reykjavik geographic coordinates: 64 09 N, 21 57 W time difference: UTC (5 hours ahead of Washington, DC during Standard Time)

Constitution

16 June 1944, effective 17 June 1944; amended many times

Country name

conventional long form: Republic of Iceland conventional short form: Iceland local long form: Lydveldid Island local short form: Island

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

Diplomatic representation in the US

chief of mission: Ambassador Albert JONSSON chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20005-1704 telephone: [1] (202) 265-6653

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 election results: Olafur Ragnar GRIMSSON 85.6%, Baldur AGUSTSSON 12.5%, Astthor MAGNUSSON 1.9%

FAX

[1] (202) 265-6656 consulate(s) general: New York

[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)

Government type

constitutional republic

Independence

1 December 1918 (became a sovereign state under the Danish Crown); 17 June 1944 (from Denmark)

International organization participation

Arctic Council, Australia Group, BIS, CBSS, CE, EAPC, EBRD, EFTA, FAO, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, ITUC, MIGA, NATO, NC, NEA, NIB, OAS (observer), OECD, OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UPU, WCO, WEU (associate), WFTU, WHO, WIPO, WMO, WTO

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)

Legal system

civil law system based on Danish law; has not accepted compulsory ICJ jurisdiction

Legislative branch

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

National holiday

Independence Day, 17 June (1944)

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 [Gudni AGUSTSSON]; Social Democratic Alliance or SDA [Ingibjorg Solrun GISLADOTTIR] (includes People's Alliance or PA, Social Democratic Party or SDP, Women's List)

Political pressure groups and leaders

Icelandic Psychiatric Human Rights Group

Suffrage

18 years of age; universal

Agriculture - products

potatoes, green vegetables; mutton, dairy products; fish

Budget

revenues: $9.64 billion expenditures: $8.602 billion (2007 est.)

Central bank discount rate

15.25% (31 December 2007)

Commercial bank prime lending rate

19.29% (31 December 2007)

Currency (code)

Icelandic krona (ISK)

Currency code

ISK

Current account balance

-$3.189 billion (2007 est.)

Debt - external

$3.073 billion (2002)

Distribution of family income - Gini index

25 (2005)

Economic aid - donor

$6.7 million (2004)

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 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. Substantial foreign investment in the aluminum and hydropower sectors has boosted economic growth which, nevertheless, has been volatile and characterized by recurrent imbalances. 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. 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.

Electricity - consumption

9.312 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Electricity - production

11.71 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 0.1% hydro: 82.5% nuclear: 0% other: 17.5% (geothermal) (2001)

Exchange rates

Icelandic kronur (ISK) per US dollar - 63.391 (2007), 70.195 (2006), 62.982 (2005), 70.192 (2004), 76.709 (2003)

Exports

$4.793 billion f.o.b. (2007 est.)

Exports - commodities

fish and fish products 70%, aluminum, animal products, ferrosilicon, diatomite

Exports - partners

Netherlands 21.3%, Germany 13.3%, UK 13.2%, Ireland 7.7%, US 7.3%, Spain 4.6%, Japan 4.3% (2007)

Fiscal year

calendar year

GDP - composition by sector

agriculture: 5.2% industry: 25.7% services: 69.1% (2007 est.)

GDP - per capita (PPP)

$40,400 (2007 est.)

GDP - real growth rate

3.8% (2007 est.)

GDP (official exchange rate)

$20 billion (2007 est.)

GDP (purchasing power parity)

$12.19 billion (2007 est.)

Household income or consumption by percentage share

lowest 10%: NA% highest 10%: NA%

Imports

$6.181 billion (2007 est.)

Imports - commodities

machinery and equipment, petroleum products, foodstuffs, textiles

Imports - partners

US 13.7%, Germany 12.2%, Sweden 10.2%, Denmark 7.5%, Netherlands 5.7%, UK 5.4%, China 5.1%, Norway 4.6% (2007)

Industrial production growth rate

9% (2007 est.)

Industries

fish processing; aluminum smelting, ferrosilicon production; geothermal power, tourism

Inflation rate (consumer prices)

5.1% (2007 est.)

Investment (gross fixed)

27.5% of GDP (2007 est.)

Labor force

181,000 (2007 est.)

Labor force - by occupation

agriculture: 5.1% industry: 23% services: 71.8% (2005)

Market value of publicly traded shares

$27.8 billion (2005)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Oil - consumption

21,120 bbl/day (2007 est.)

Oil - exports

860.8 bbl/day (2005)

Oil - imports

17,450 bbl/day (2005)

Oil - production

0 bbl/day (2007 est.)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Population below poverty line

NA%

Public debt

27.6% of GDP (2007 est.)

Reserves of foreign exchange and gold

$2.436 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$NA

Stock of direct foreign investment - at home

$NA

Stock of domestic credit

$49.67 billion (31 December 2006)

Stock of money

$6.64 billion (31 December 2007)

Stock of quasi money

$15.05 billion (31 December 2006)

Unemployment rate

1% (2007 est.)

Internet country code

.is

Internet hosts

263,980 (2008)

Internet Service Providers (ISPs)

20 (2001)

Internet users

202,300 (2007)

Radio broadcast stations

AM 3, FM about 70 (including repeaters), shortwave 1 (1998)

Radios

260,000 (1997)

Telephone system

general assessment: telecommunications infrastructure is modern and fully digitized, with satellite-earth stations, fiber-optic cables, and an extensive broadband network domestic: liberalization of the telecommunications sector beginning in the late 1990s has led to increased competition especially in the mobile services segment of the market international: country code - 354; the CANTAT-3 and FARICE-1 submarine cable systems provide connectivity to Canada, the Faroe Islands, UK, Denmark, and Germany; a planned new section of the Hibernia-Atlantic submarine cable will provide additional connectivity to Canada, US, and Ireland; 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)

Telephones - main lines in use

186,700 (2007)

Telephones - mobile cellular

347,500 (2007)

Television broadcast stations

14 (plus 156 repeaters) (1997)

Televisions

98,000 (1997)

Airports

99 (2007)

Airports - with paved runways

total: 5 over 3,047 m: 1 1,524 to 2,437 m: 3 914 to 1,523 m: 1 (2007)

Airports - with unpaved runways

total: 94 1,524 to 2,437 m: 3 914 to 1,523 m: 28 under 914 m: 63 (2007)

Merchant marine

total: 2 by type: passenger/cargo 2 registered in other countries: 37 (Antigua and Barbuda 12, Bahamas 1, Belize 2, Denmark 2, Faroe Islands 1, Gibraltar 1, Malta 5, Marshall Islands 3, Norway 3, Saint Vincent and the Grenadines 7) (2008)

Ports and terminals

Grundartangi, Hafnarfjordur, Reykjavik

Roadways

total: 13,058 km paved/oiled gravel: 4,397 km (does not include urban roads) unpaved: 8,661 km (2007)

Manpower available for military service

males age 16-49: 74,896 (2008 est.)

Manpower fit for military service

males age 16-49: 62,342 (2008 est.)

Manpower reaching militarily significant age annually

male: 2,393 female: 2,317 (2008 est.)

Military - note

Iceland has no standing military force; under a 1951 bilateral agreement - still valid - its defense was provided by the US-manned Icelandic Defense Force (IDF) headquartered at Keflavik; however, all US military forces in Iceland were withdrawn as of October 2006; although wartime defense of Iceland remains a NATO commitment, in April 2007, Iceland and Norway signed a bilateral agreement providing for Norwegian aerial surveillance and defense of Icelandic airspace (2008)

Military branches

no regular military forces; Icelandic National Police (2008)

Military expenditures

0% of GDP (2005 est.)

Disputes - international

Iceland, the UK, and Ireland dispute Denmark's claim that the Faroe Islands' continental shelf extends beyond 200 nm This page was last updated on 18 December, 2008