2009 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, and social cohesion are first-rate by world standards.

Area

total: 103,000 sq km country comparison to the world: 107 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 United Kingdom

Map references

Europe

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: 20.7% (male 32,268/female 31,308) 15-64 years: 67.1% (male 104,158/female 101,584) 65 years and over: 12.2% (male 16,952/female 20,424) (2009 est.)

Birth rate

13.43 births/1,000 population (2009 est.) country comparison to the world: 154

Death rate

6.85 deaths/1,000 population (July 2009 est.) country comparison to the world: 139

Education expenditures

7.6% of GDP (2004) country comparison to the world: 16

Ethnic groups

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

HIV/AIDS - adult prevalence rate

0.2% (2007 est.) country comparison to the world: 100

HIV/AIDS - deaths

fewer than 100 (2003 est.) country comparison to the world: 144

HIV/AIDS - people living with HIV/AIDS

220 (2007 est.) country comparison to the world: 155

Infant mortality rate

total: 3.23 deaths/1,000 live births country comparison to the world: 218 male: 3.38 deaths/1,000 live births female: 3.08 deaths/1,000 live births (2009 est.)

Languages

Icelandic, English, Nordic languages, German widely spoken

Life expectancy at birth

total population: 80.67 years country comparison to the world: 14 male: 78.53 years female: 82.9 years (2009 est.)

Literacy

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

Median age

total: 35.1 years male: 34.6 years female: 35.6 years (2009 est.)

Nationality

noun: Icelander(s) adjective: Icelandic

Net migration rate

0.83 migrant(s)/1,000 population (2009 est.) country comparison to the world: 60

Population

306,694 (July 2009 est.) country comparison to the world: 178

Population growth rate

0.741% (2009 est.) country comparison to the world: 143

Religions

Lutheran Church of Iceland 80.7%, Roman Catholic Church 2.5%, Reykjavik Free Church 2.4%, Hafnarfjorour Free Church 1.6%, other religions 3.6%, unaffiliated 3%, other or unspecified 6.2% (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: 1.02 male(s)/female 65 years and over: 0.83 male(s)/female total population: 1 male(s)/female (2009 est.)

Total fertility rate

1.9 children born/woman (2009 est.) country comparison to the world: 143

Urbanization

urban population: 92% of total population (2008) rate of urbanization: 0.8% annual rate of change (2005-10 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 0 (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 Hjalmar HANNESSON 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 Hjalmar W. HANNESSON chancery: House of Sweden, 2900 K Street NW #509, Washington, DC 20007 telephone: [1] (202) 265-6653

Executive branch

chief of state: President Olafur Ragnar GRIMSSON (since 1 August 1996) head of government: Prime Minister Johanna SIGURDARDOTTIR (since 1 February 2009); cabinet: Cabinet appointed by the prime minister elections: president, a largely ceremonial post, is elected by popular vote for a four-year term (no term limits); election last held 28 June 2004 (next to be held in June 2012); following legislative elections, the leader of the majority party or the leader of the majority coalition is usually the prime minister note: the presidential election of 28 June 2008 was never held because Olafur Ragnar GRIMSSON had no challengers; he was sworn in on 1 August 2008 2004 election results: Olafur Ragnar GRIMSSON elected president; percent of vote - 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); the colors represent three of the elements that make up the island: red is for the island's volcanic fires, white recalls the snow and ice fields of the island, and blue is for the surrounding ocean

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 25 April 2009 (next to be held in 2013) election results: percent of vote by party - Social Democratic Alliance 29.8%, Independence Party 23.7%, Left-Green Movement 21.7%, Progressive Party 14.8%, Citizens' Movement 7.2%, other 2.8%; seats by party - Social Democratic Alliance 20, Independence Party 16, Left-Green Alliance 14, Progressive Party 9, Citizens' Movement 4

National holiday

Independence Day, 17 June (1944)

Political parties and leaders

Citizens' Movement; Independence Party or IP [Bjarni BENEDIKTSSON, Jr.]; Left-Green Movement or LGM [Steingrimur SIGFUSSON]; Liberal Party or LP [Gudjon KRISTJANSSON]; Progressive Party or PP [Sigmundur David GUNNLAUGSSON; Social Democratic Alliance or SDA [Johanna SIGUROARDOTTIR] (includes People's Alliance or PA, Social Democratic Party or SDP, Women's List)

Political pressure groups and leaders

People's Voices [Hordur TORFARSON]; New Times; Civic Action Association [Gunnar SIGURDSSON]; The Association of Military Opponents [Stefan PALSSON]

Suffrage

18 years of age; universal

Agriculture - products

potatoes, green vegetables; mutton, dairy products; fish

Budget

revenues: $6.657 billion expenditures: $6.856 billion (2008 est.)

Central bank discount rate

22% (31 December 2008) country comparison to the world: 12 15.25% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008) country comparison to the world: 18 19.29% (31 December 2007)

Current account balance

-$6.606 billion (2008 est.) country comparison to the world: 164 -$3.178 billion (2007 est.)

Debt - external

$3.073 billion (2002) country comparison to the world: 125

Distribution of family income - Gini index

25 (2005) country comparison to the world: 130

Economy - overview

Iceland's Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system, including generous housing subsidies. Prior to the 2008 crisis, Iceland had achieved high growth, low unemployment, and a remarkably even distribution of income. Government economic priorities have included stabilizing the krona, reducing the current account deficit, containing inflation, restructuring the financial sector, and diversifying the economy. The economy depends heavily on the fishing industry, which provides 40% of export earnings, more than 12% of GDP, and employs 7% of the work force. It 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. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, with new developments in software production, biotechnology, and tourism. Abundant geothermal sources have attracted substantial foreign investment in the aluminum and hydropower sectors and boosted economic growth, although the financial crisis has put several investment projects on hold. Much of Iceland's economic growth in recent years came as the result of a boom in domestic demand following the rapid expansion of the country's financial sector. Domestic banks expanded aggressively in foreign markets, and consumers and businesses borrowed heavily in foreign-currency loans, following the privatization of the sector in the early 2000s. Worsening global financial conditions throughout 2008 resulted in a sharp depreciation of the krona vis-a-vis other major currencies. The foreign exposure of Icelandic banks, whose loans and other assets totaled more than 10 times the country's GDP, became unsustainable. Iceland's three largest banks collapsed in late 2008. The country negotiated over $10 billion in loans from the IMF and other countries to stabilize its currency and financial sector, and to guarantee foreign deposits in Icelandic banks. A protracted recession is expected in 2009 and 2010 with GDP likely to contract and unemployment likely to surpass 10%. The collapse of the financial system has led to a major shift in opinion in favor of joining the EU and adopting the euro. Previous opposition to this move stemmed from Icelanders' concern about losing control of their fishing resources. Iceland's coalition government collapsed in January 2009 following protests over growing joblessness and losses to personal savings.

Electricity - consumption

11.22 billion kWh (2007 est.) country comparison to the world: 79

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

0 kWh (2008 est.)

Electricity - production

11.71 billion kWh (2007 est.) country comparison to the world: 86

Exchange rates

Icelandic kronur (ISK) per US dollar - 85.619 (2008 est.), 63.391 (2007), 70.195 (2006), 62.982 (2005), 70.192 (2004)

Exports

$5.399 billion (2008 est.) country comparison to the world: 105 $4.793 billion (2007 est.)

Exports - commodities

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

Exports - partners

Netherlands 33.8%, UK 11.7%, Germany 11.5%, US 5.8%, Japan 4.9%, Norway 4.1% (2008)

GDP - composition by sector

agriculture: 5% industry: 25.2% services: 69.8% (2008 est.)

GDP - per capita (PPP)

$42,300 (2008 est.) country comparison to the world: 17 $42,100 (2007 est.) $40,200 (2006 est.) note: data are in 2008 US dollars

GDP - real growth rate

1.3% (2008 est.) country comparison to the world: 169 5.5% (2007 est.) 4.5% (2006 est.)

GDP (official exchange rate)

$16.79 billion (2008 est.)

GDP (purchasing power parity)

$12.87 billion (2008 est.) country comparison to the world: 139 $12.7 billion (2007 est.) $12.03 billion (2006 est.) note: data are in 2008 US dollars

Household income or consumption by percentage share

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

Imports

$5.699 billion (2008 est.) country comparison to the world: 110 $6.181 billion (2007 est.)

Imports - commodities

machinery and equipment, petroleum products, foodstuffs, textiles

Imports - partners

Norway 10.9%, Germany 10.4%, Sweden 9%, US 8%, Denmark 7.4%, China 6.8%, Netherlands 6%, UK 4.4%, Japan 4% (2008)

Industrial production growth rate

0% (2008 est.) country comparison to the world: 134

Industries

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

Inflation rate (consumer prices)

12.7% (2008 est.) country comparison to the world: 176 5.1% (2007 est.)

Investment (gross fixed)

23.9% of GDP (2008 est.) country comparison to the world: 60

Labor force

184,000 (2008 est.) country comparison to the world: 167

Labor force - by occupation

agriculture: 3% industry: 19% services: 78% (2007)

Market value of publicly traded shares

$NA (31 December 2008) country comparison to the world: 62 $40.56 billion (31 December 2007) $36.1 billion (31 December 2006)

Natural gas - consumption

0 cu m (2008 est.) country comparison to the world: 172

Natural gas - exports

0 cu m (2008) country comparison to the world: 66

Natural gas - imports

0 cu m (2008 est.) country comparison to the world: 168

Natural gas - production

0 cu m (2008 est.) country comparison to the world: 176

Natural gas - proved reserves

0 cu m (1 January 2009 est.) country comparison to the world: 166

Oil - consumption

19,880 bbl/day (2008 est.) country comparison to the world: 126

Oil - exports

2,975 bbl/day (2008 est.) country comparison to the world: 109

Oil - imports

17,510 bbl/day (2008 est.) country comparison to the world: 117

Oil - production

0 bbl/day (2008 est.) country comparison to the world: 186

Oil - proved reserves

0 bbl (1 January 2009 est.) country comparison to the world: 160

Population below poverty line

NA%

Public debt

56.5% of GDP (2008 est.) country comparison to the world: 28 35.9% of GDP (2004 est.)

Reserves of foreign exchange and gold

$2.5 billion (31 December 2008 est.) country comparison to the world: 102 $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

$NA (31 December 2008) $49.67 billion (31 December 2006)

Stock of money

$NA (31 December 2008) $6.64 billion (31 December 2007)

Stock of quasi money

$15.05 billion (31 December 2006) country comparison to the world: 45 $NA (31 December 2007)

Unemployment rate

1.6% (2008 est.) country comparison to the world: 14 1% (2007 est.) note: this figure climbed to 9.4% as of February 2009

Internet country code

.is

Internet hosts

272,201 (2009) country comparison to the world: 59

Internet users

250,000 (2008) country comparison to the world: 131

Radio broadcast stations

AM 3, FM about 70, shortwave 1 (2008)

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

187,000 (2008) country comparison to the world: 125

Telephones - mobile cellular

342,000 (2008) country comparison to the world: 166

Television broadcast stations

14 (plus 156 repeaters) (1997)

Airports

99 (2009) country comparison to the world: 62

Airports - with paved runways

total: 6 over 3,047 m: 1 1,524 to 2,437 m: 3 914 to 1,523 m: 2 (2009)

Airports - with unpaved runways

total: 93 1,524 to 2,437 m: 3 914 to 1,523 m: 27 under 914 m: 63 (2009)

Merchant marine

total: 2 country comparison to the world: 145 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 country comparison to the world: 129 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: 62,576 females age 16-49: 61,159 (2009 est.)

Manpower reaching militarily significant age annually

male: 2,369 female: 2,349 (2009 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.) country comparison to the world: 173

Disputes - international

Iceland, the UK, and Ireland dispute Denmark's claim that the Faroe Islands' continental shelf extends beyond 200 nm page last updated on November 11, 2009