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.

field in that editiontext changed from the edition beforenot in that editionthe open editionEach field below ends in its editions, 1990 to 2025. Point at a year above to follow it down.

CapitalReykjavik, UTC
Position65 00 N, 18 00 W
Area103,000 sq km
LocationNorthern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom
Populationas each edition published it
306,694 people July 2009 est. · 257,023 in 1990
Population growth% a year
0.741% 2009 est. · 0.88% in 1993
Median ageyears
35.1 years 2009 est. · 34 yrs in 2003
Life expectancyyears at birth
80.67 years 2009 est. · 78.69 yrs in 1993
Fertility ratechildren per woman
1.9 children per woman 2009 est. · 2.2 in 1990
Infant mortalitydeaths per 1,000 live births
3.23 deaths per 1,000 live births 2009 est. · 7 in 1990
GDP per capitaeach edition's own dollars
$42,300 2008 est. · $17,400 in 1993
GDP real growth% a year
1.3% 2008 est. · -3.3% in 1993

Introduction

1 field

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.

Geography

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

20 fields

Land useshare of 103,000 sq km

permanent crops 0%other 99.93% (2005)arable land 0.07% in all
Area
103,000sq km
country comparison to the world: 107land: 100,250 sq kmwater: 2,750 sq kmslightly smaller than Kentucky
Coastline
4,970km
land boundaries: 0 kmterritorial sea: 12 nmexclusive economic zone: 200 nmcontinental shelf: 200 nm or to the edge of the continental margin
Highest point
2,110m
Hvannadalshnukur · (at Vatnajokull glacier)lowest point: Atlantic Ocean 0 m

Location

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

Geographic coordinates

65 00 N, 18 00 W

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

Natural resources

fish, hydropower, geothermal power, diatomite

Freshwater withdrawal (domestic/industrial/agricultural)

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

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

People

22 fields

Age structuremale left, female right · (2009 est.)

16,952
65 and over12.2%
20,424
104,158
15-6467.1%
101,584
32,268
0-1420.7%
31,308
MaleFemale
Population
306,694
(July 2009 est.)country comparison to the world: 178growth rate: 0.741% (2009 est.)country comparison to the world: 143

Per 1,000 population

Birth
13.43 (2009 est.)Death
6.85 (July 2009 est.)Net migration
0.83 (2009 est.)

Male · female

TotalMale · femaleLife expectancy years (2009 est.)80.67
78.53 · 82.9Infant mortality deaths/1,000 live births (2009 est.)3.23
3.38 · 3.08Literacy (2003 est.)99%
99% · 99%
TotalMale · femaleMedian age years (2009 est.)35.1
34.6 · 35.6School life expectancy years (2006)18
17 · 19
MaleFemaleLife expectancy country comparison to the world: 14 · Infant mortality country comparison to the world: 218 · Literacy definition: age 15 and over can read and write

Religions(2006 est.)

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.)
Urban population
92%of total population
(2008)rate of urbanization: 0.8% annual rate of change (2005-10 est.)
HIV/AIDS - adult prevalence rate
0.2%
(2007 est.)country comparison to the world: 100

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

HIV/AIDS - people living with HIV/AIDS

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

HIV/AIDS - deaths

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

Nationality

noun:
Icelander(s)
adjective:
Icelandic

Ethnic groups

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

Languages

Icelandic, English, Nordic languages, German widely spoken

Education expenditures

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

Government

Constitutional republic; President Olafur Ragnar GRIMSSON (since 1 August 1996); Prime Minister Johanna SIGURDARDOTTIR (since 1 February 2009)

18 fields

Presidential electionpercent of vote

85.6%
Olafur Ragnar GRIMSSON 85.6%Baldur AGUSTSSON 12.5%Astthor MAGNUSSON ; 1.9%election last held 28 June 2004 (next to be held in June 2012)

Parliament or Althing, 63 seats, elected 25 April 2009one dot, one seat

Social Democratic Alliance 20Independence Party 16Left-Green Alliance 14Progressive Party 9Citizens' Movement 4

Percent of vote

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%

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 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)

National holiday

Independence Day, 17 June (1944)

Constitution

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

Suffrage

18 years of age; universal

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 fields
GDP, purchasing power parity
$12.87billion
(2008 est.)country comparison to the world: 139$12.7 billion (2007 est.) · $12.03 billion (2006 est.)note: data are in 2008 US dollarsofficial exchange rate: $16.79 billion (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
Real growth rate
1.3%
(2008 est.)country comparison to the world: 1695.5% (2007 est.) · 4.5% (2006 est.)industrial production growth: 0% (2008 est.)country comparison to the world: 134
Inflation, consumer prices
12.7%
(2008 est.)country comparison to the world: 1765.1% (2007 est.)

GDP - composition by sector(2008 est.)

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

Trading partnersexports left, imports right

33.8%
Netherlands
6%
11.7%
UK
4.4%
11.5%
Germany
10.4%
4.1%
Norway
10.9%
Sweden
9%
5.8%
US
8%
Denmark
7.4%
China
6.8%
4.9%
Japan
4%
Exports $5.399 billion (2008 est.)Imports $5.699 billion (2008 est.)(2008)

Budget

Revenues
$6.657 billionExpenditures
$6.856 billion (2008 est.)

Electricity

Electricity production
11.71 billion (2007 est.)Electricity consumption
11.22 billion (2007 est.)

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.

Labor force

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

Labor force - by occupation

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

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

Distribution of family income - Gini index

25 (2005) country comparison to the world: 130

Investment (gross fixed)

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

Public debt

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

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 money

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

Stock of quasi money

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

Stock of domestic credit

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

Market value of publicly traded shares

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

Agriculture - products

  • potatoes, green vegetables;
  • mutton, dairy products;
  • fish

Industries

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

Oil - production

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

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 - proved reserves

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

Natural gas - production

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

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 - proved reserves

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

Current account balance

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

Exports

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

Exports - commodities

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

Imports

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

Imports - commodities

machinery and equipment, petroleum products, foodstuffs, textiles

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

Debt - external

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

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 fields
Mobile cellular
342,000
(2008)
Internet users
272,201
(2009)
Fixed lines
187,000
(2008) · country code .is

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)

Radio broadcast stations

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

Television broadcast stations

14 (plus 156 repeaters) (1997)

Internet users

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

Transportation

6 fields

Airports by runway lengthpaved only

over 3,047 m
1
2 (2009)

Airports by runway lengthunpaved only

under 914 m
63

Airports

99 (2009) country comparison to the world: 62

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)

Ports and terminals

Grundartangi, Hafnarfjordur, Reykjavik

Military

No regular military forces; Icelandic National Police (2008)

6 fields
Military expenditures
0%of GDP
(2005 est.)country comparison to the world: 173

Military branches

no regular military forces; Icelandic National Police (2008)

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.)

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)

Transnational Issues

1 field

Disputes - 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.