Iceland
Republic of IcelandLydveldid Island
constitutional republic
Iceland as the 2009 edition of the CIA World Factbook published it: 133 fields, one of 36 editions from 1990 to 2025.
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Introduction
1 fieldBackground
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.
Geography
Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom
20 fieldsLand useshare of 103,000 sq km
Location
Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom
Terrain
mostly plateau interspersed with mountain peaks, icefields; coast deeply indented by bays and fiords
Freshwater withdrawal (domestic/industrial/agricultural)
- total:
- 0.17 cu km/yr (34%/66%/0%)
- per capita:
- 567 cu m/yr (2003)
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
People
22 fieldsAge structuremale left, female right · (2009 est.)
Per 1,000 population
Male · female
Religions(2006 est.)
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.)
Ethnic groups
homogeneous mixture of descendants of Norse and Celts 94%, population of foreign origin 6%
Government
Constitutional republic; President Olafur Ragnar GRIMSSON (since 1 August 1996); Prime Minister Johanna SIGURDARDOTTIR (since 1 February 2009)
18 fieldsPresidential electionpercent of vote
Parliament or Althing, 63 seats, elected 25 April 2009one dot, one seat
Percent of vote
Country name
- conventional long form:
- Republic of Iceland
- conventional short form:
- Iceland
- local long form:
- Lydveldid Island
- local short form:
- Island
Capital
- name:
- Reykjavik
- geographic coordinates:
- 64 09 N, 21 57 W
- time difference:
- UTC 0 (5 hours ahead of Washington, DC during Standard Time)
Administrative divisions
8 regions; Austurland, Hofudhborgarsvaedhi, Nordhurland Eystra, Nordhurland Vestra, Sudhurland, Sudhurnes, Vestfirdhir, Vesturland
Independence
1 December 1918 (became a sovereign state under the Danish Crown); 17 June 1944 (from Denmark)
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%;
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
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
- 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]
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
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
- FAX:
- [1] (202) 265-6656
- consulate(s) general:
- New York
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
- 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);
- 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
Economy
Iceland's Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system, including generous housing subsidies.
51 fieldsGDP - composition by sector(2008 est.)
Trading partnersexports left, imports right
Electricity
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.
Unemployment rate
1.6% (2008 est.) · 1% (2007 est.) country comparison to the world: 14 note: this figure climbed to 9.4% as of February 2009
Central bank discount rate
22% (31 December 2008) · 15.25% (31 December 2007) country comparison to the world: 12
Commercial bank prime lending rate
NA% (31 December 2008) · 19.29% (31 December 2007) country comparison to the world: 18
Stock of quasi money
$15.05 billion (31 December 2006); $NA (31 December 2007) country comparison to the world: 45
Current account balance
-$6.606 billion (2008 est.) · -$3.178 billion (2007 est.) country comparison to the world: 164
Reserves of foreign exchange and gold
$2.5 billion (31 December 2008 est.) · $2.436 billion (31 December 2007 est.) country comparison to the world: 102
Exchange rates
Icelandic kronur (ISK) per US dollar - 85.619 (2008 est.), 63.391 (2007), 70.195 (2006), 62.982 (2005), 70.192 (2004)
Communications
8 fieldsTelephone 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)
Transportation
6 fieldsAirports by runway lengthunpaved only
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)
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)
Military
No regular military forces; Icelandic National Police (2008)
6 fieldsMilitary - 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)
Transnational Issues
1 fieldDisputes - international
Iceland, the UK, and Ireland dispute Denmark's claim that the Faroe Islands' continental shelf extends beyond 200 nm
Cite this entry
Central Intelligence Agency. “Iceland.” The World Factbook 2009. Archived by The Factbook, thefactbook.org/iceland/2009.