2010 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. The second half of the 20th century saw substantial economic growth driven primarily by the fishing industry. The economy diversified greatly after the country joined the European Economic Area in 1994, but Iceland was especially hard hit by the global financial crisis in the years following 2008. Literacy, longevity, and social cohesion are first rate by world standards.

Area

land

100,250 sq km

total

103,000 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

highest point

Hvannadalshnukur 2,110 m (at Vatnajokull glacier)

lowest point

Atlantic Ocean 0 m

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)

per capita

567 cu m/yr (2003)

total

0.17 cu km/yr (34%/66%/0%)

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%

other

99.93% (2005)

permanent crops

0%

Location

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

Map references

Europe

Maritime claims

continental shelf

200 nm or to the edge of the continental margin

exclusive economic zone

200 nm

territorial sea

12 nm

Natural hazards

earthquakes and volcanic activity

volcanism

Iceland, situated on top of a hotspot, experiences severe volcanic activity; Eyjafjallajokull (elev. 1,666 m, 5,466 ft) erupted in 2010, sending ash high into the atmosphere and seriously disrupting European air traffic; scientists continue to monitor nearby Katla (elev. 1,512 m, 4,961 ft), which has a high probability of eruption in the very near future, potentially disrupting air traffic; Grimsvotn and Hekla are Iceland's most frequently active volcanoes; other historically active volcanoes include Askja, Bardarbunga, Brennisteinsfjoll, Esjufjoll, Hengill, Krafla, Krisuvik, Kverkfjoll, Oraefajokull, Reykjanes, Torfajokull, and Vestmannaeyjar

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) (2010 est.)

Birth rate

13.36 births/1,000 population (2010 est.)

Death rate

6.9 deaths/1,000 population (July 2010 est.)

Education expenditures

7.5% of GDP (2007)

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.)

HIV/AIDS - deaths

fewer than 100 (2003 est.)

HIV/AIDS - people living with HIV/AIDS

220 (2007 est.)

Infant mortality rate

female

3.07 deaths/1,000 live births (2010 est.)

male

3.36 deaths/1,000 live births

total

3.21 deaths/1,000 live births

Languages

Icelandic, English, Nordic languages, German widely spoken

Life expectancy at birth

female

83.04 years (2010 est.)

male

78.63 years

total population

80.79 years

Literacy

definition: age 15 and over can read and write

female

99% (2003 est.)

male

99%

total population

99%

Median age

female

35.8 years (2010 est.)

male

34.9 years

total

35.4 years

Nationality

adjective

Icelandic

noun

Icelander(s)

Net migration rate

0.54 migrant(s)/1,000 population (2010 est.)

Population

308,910 (July 2010 est.)

Population growth rate

0.699% (2010 est.)

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)

female

20 years (2008)

male

17 years

total

18 years

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 (2010 est.)

Total fertility rate

1.9 children born/woman (2010 est.)

Urbanization

rate of urbanization

0.8% annual rate of change (2005-10 est.)

urban population

92% of total population (2008)

Administrative divisions

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

Capital

geographic coordinates

64 09 N, 21 57 W

name

Reykjavik

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 Luis E. ARREAGA

embassy

Laufasvegur 21, 101 Reykjavik

FAX

[354] 562-9118

mailing address

US Department of State, 5640 Reykjavik Place, Washington, D.C. 20521-5640

telephone

[354] 562-9100

Diplomatic representation in the US

chancery

House of Sweden, 2900 K Street NW #509, Washington, DC 20007

chief of mission

Ambassador Hjalmar W. HANNESSON

consulate(s) general

New York

FAX

[1] (202) 265-6656

telephone

[1] (202) 265-6653

Executive branch

cabinet

Cabinet appointed by the prime minister (For more information visit the World Leaders website )

chief of state

President Olafur Ragnar GRIMSSON (since 1 August 1996)

elections

president, a largely ceremonial post, elected by popular vote for a four-year term (no term limits); election last held on 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 usually the prime minister note: the presidential election of 28 June 2008 was not 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%;

head of government

Prime Minister Johanna SIGURDARDOTTIR (since 1 February 2009);

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, FATF, 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, NSG, OAS (observer), OECD, OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UPU, WCO, 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 elected by popular vote to serve four-year terms)

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 note: the Citizens' Movement disintegrated in September 2009; three of its former MPs are now represented under the banner of The Movement and the fourth former MP is an independent

elections

last held on 25 April 2009 (next to be held in 2013)

National anthem

lyrics/music

Matthias JOCHUMSSON/Sveinbjorn SVEINBJORNSSON note: adopted 1944; the anthem, also known as "O, Guo vors Lands" (O, God of Our Land), was originally written and performed in 1874

name

"Lofsongur" (Song of Praise)

National holiday

Independence Day, 17 June (1944)

Political parties and leaders

Independence Party or IP [Bjarni BENEDIKTSSON]; Left-Green Movement or LGM [Steingrimur SIGFUSSON]; Progressive Party or PP [Sigmundur David GUNNLAUGSSON]; Social Democratic Alliance or SDA [Johanna SIGURDARDOTTIR]; The Movement [Birgitta JONSDOTTIR]

Suffrage

18 years of age; universal

Agriculture - products

potatoes, green vegetables; mutton, chicken, pork, beef, dairy products; fish

Central bank discount rate

14.55% (31 December 2009) 22% (31 December 2008)

Commercial bank prime lending rate

18.99% (31 December 2009 est.) 19.29% (31 December 2007)

Current account balance

-$42 million (2010 est.) -$440 million (2009 est.)

Debt - external

$3.073 billion (2002)

Distribution of family income - Gini index

28 (2006) 25 (2005)

Economy - overview

Iceland's Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system. Prior to the 2008 crisis, Iceland had achieved high growth, low unemployment, and a remarkably even distribution of income. 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, particularly within the fields of software production, biotechnology, and tourism. Abundant geothermal and hydropower sources have attracted substantial foreign investment in the aluminum sector 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 currencies, following the privatization of the banking 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 secured over $10 billion in loans from the IMF and other countries to stabilize its currency and financial sector, and to back government guarantees for foreign deposits in Icelandic banks. GDP fell 6.8% in 2009, and unemployment peaked at 9.4% in February 2009. GDP fell 3.4% in 2010. Since the collapse of Iceland's financial sector, government economic

priorities have included

stabilizing the krona, reducing Iceland's high budget deficit, containing inflation, restructuring the financial sector, and diversifying the economy. Three new banks were established to take over the domestic assets of the collapsed banks. Two of them have foreign majority ownership, while the State holds a majority of the shares of the third. British and Dutch authorities have pressed claims totaling over $5 billion against Iceland to compensate their citizens for losses suffered on deposits held in the failed Icelandic bank, Landsbanki Islands. Iceland agreed to new terms with the UK and the Netherlands to compensate British and Dutch depositors, but the agreement must first be approved by the Icelandic President. Iceland began EU accession negotiations with the EU in July 2010, however, public support has dropped substantially because of concern about losing control over fishing resources and in reaction to measures taken by Brussels during the ongoing Eurozone crisis.

Electricity - consumption

16.48 billion kWh (2009 est.)

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

0 kWh (2008 est.)

Electricity - production

16.84 billion kWh (2009 est.)

Exchange rates

Icelandic kronur (ISK) per US dollar - 139.319 (2010), 123.638 (2009), 85.619 (2008), 63.391 (2007), 70.195 (2006)

Exports

$4.619 billion (2010 est.) $4.05 billion (2009 est.)

Exports - commodities

fish and fish products 40%, aluminum, animal products, ferrosilicon, diatomite

Exports - partners

Netherlands 30.71%, UK 12.73%, Germany 11.21%, Norway 5.75%, Spain 4.82% (2009)

GDP - composition by sector

agriculture

5.5%

industry

24.7%

services

69.9% (2010 est.)

GDP - per capita (PPP)

$38,400 (2010 est.) $40,000 (2009 est.) $43,300 (2008 est.) note: data are in 2010 US dollars

GDP - real growth rate

-3.4% (2010 est.) -6.8% (2009 est.) 1% (2008 est.)

GDP (official exchange rate)

$12.77 billion (2010 est.)

GDP (purchasing power parity)

$11.86 billion (2010 est.) $12.28 billion (2009 est.) $13.17 billion (2008 est.) note: data are in 2010 US dollars

Household income or consumption by percentage share

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

Imports

$3.677 billion (2010 est.) $3.318 billion (2009 est.)

Imports - commodities

machinery and equipment, petroleum products, foodstuffs, textiles

Imports - partners

Norway 12.97%, Netherlands 8.62%, Germany 8.3%, Sweden 8.03%, Denmark 7.27%, US 6.94%, China 4.98%, UK 4.55%, Brazil 4.09% (2009)

Industrial production growth rate

-1% (2010 est.)

Industries

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

Inflation rate (consumer prices)

5.5% (2010 est.) 12% (2009 est.)

Investment (gross fixed)

12.4% of GDP (2010 est.)

Labor force

188,000 (2010 est.)

Labor force - by occupation

agriculture

4.8%

industry

22.2%

services

73% (2008)

Market value of publicly traded shares

$1.128 billion (31 December 2009) $5.557 billion (31 December 2008) $40.56 billion (31 December 2007)

Natural gas - consumption

0 cu m (2008 est.)

Natural gas - exports

0 cu m (2008 est.)

Natural gas - imports

0 cu m (2008 est.)

Natural gas - production

0 cu m (2008 est.)

Natural gas - proved reserves

0 cu m (1 January 2010 est.)

Oil - consumption

18,900 bbl/day (2009 est.)

Oil - exports

1,915 bbl/day (2008 est.)

Oil - imports

16,390 bbl/day (2008 est.)

Oil - production

0 bbl/day (2009 est.)

Oil - proved reserves

0 bbl (1 January 2010 est.)

Population below poverty line

NA%

Public debt

123.8% of GDP (2010 est.) 113.9% of GDP (2009 est.)

Reserves of foreign exchange and gold

$4.206 billion (31 December 2010 est.) $3.883 billion (31 December 2009 est.)

Stock of broad money

$19.97 billion (31 December 2009 est.) $24.28 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad

$NA $8.8 billion (31 December 2008)

Stock of direct foreign investment - at home

$NA (31 December 2010) $9.2 billion (#REF!)

Stock of domestic credit

$46.03 billion (31 December 2010 est.) $54.65 billion (31 December 2009 est.)

Stock of narrow money

$4.413 billion (31 December 2010 est) $4.438 billion (31 December 2009 est)

Unemployment rate

8.6% (2010 est.) 8% (2009 est.)

Broadcast media

state-owned public television broadcaster operates 1 TV channel nationally; several privately-owned TV stations broadcast nationally and roughly another half-dozen operate locally; about half the households utilize multi-channel cable or satellite TV services; state-owned public radio broadcaster operates 2 national networks and 4 regional stations; 2 privately-owned radio stations operate nationally and another 15 provide more limited coverage (2007)

Internet country code

.is

Internet hosts

344,748 (2010)

Internet users

301,600 (2009)

Telephone system

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

general assessment

telecommunications infrastructure is modern and fully digitized, with satellite-earth stations, fiber-optic cables, and an extensive broadband network

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

185,200 (2009)

Telephones - mobile cellular

349,000 (2009)

Airports

99 (2010)

Airports - with paved runways

total

6 over 3,047 m: 1 1,524 to 2,437 m: 3 914 to 1,523 m: 2 (2010)

Airports - with unpaved runways

total

93 1,524 to 2,437 m: 3 914 to 1,523 m: 27 under 914 m: 63 (2010)

Merchant marine

by type

passenger/cargo 2

registered in other countries

19 (Antigua and Barbuda 9, Belize 2, Denmark 3, Finland 1, Gibraltar 1, Norway 3) (2010)

total

2

Ports and terminals

Grundartangi, Hafnarfjordur, Reykjavik

Roadways

paved/oiled gravel

4,438 km (does not include urban roads)

total

12,869 km

unpaved

8,431 km (2009)

Manpower available for military service

males age 16-49: 75,259 (2010 est.)

Manpower fit for military service

males age 16-49: 62,705 females age 16-49: 61,392 (2010 est.)

Manpower reaching militarily significant age annually

female

2,263 (2010 est.)

male

2,318

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 page last updated on January 20, 2011 ======================================================================