Iceland
unitary parliamentary republic
Iceland as the 2024 edition of the CIA World Factbook published it: 144 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 Althingi, which was 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. Denmark granted limited home rule in 1874 and complete independence 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 the global financial crisis hit Iceland especially hard in the years after 2008. The economy is now on an upward trajectory, primarily thanks to a tourism and construction boom. 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
17 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
Elevation
- highest point:
- Hvannadalshnukur (at Vatnajokull Glacier) 2,110 m
- lowest point:
- Atlantic Ocean 0 m
- mean elevation:
- 557 m
Population distribution
- Iceland is almost entirely urban with half of the population located in and around the capital of Reykjavik;
- smaller clusters are primarily found along the coast in the north and west
Natural hazards
earthquakes and volcanic activity
- volcanism:
- Iceland, situated on top of a hotspot, experiences severe volcanic activity;
- Eyjafjallajokull (1,666 m) erupted in 2010, sending ash high into the atmosphere and seriously disrupting European air traffic;
- scientists continue to monitor nearby Katla (1,512 m), which has a high probability of eruption in the very near future, potentially disrupting air traffic;
- Grimsvoetn and Hekla are Iceland's most active volcanoes;
- other historically active volcanoes include
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 and Society
37 fieldsAge structuremale left, female right · (2024 est.)
Per 1,000 population(2024 est.)
Male · female(2020)
Ethnic groups(2024 est.)
Religions
Evangelical Lutheran Church of Iceland (official) 58.6% Roman Catholic 3.8%, Independent Congregation of Reykjavik 2.6%, Independent Congregation of Hafnarfjordur 1.9%, pagan worship 1.5%, Icelandic Ethical Humanist Association 1.4%, other (includes Zuist and Pentecostal) or unspecified 18.7%, none 7.7% (2024 est.)
Demographic profile
Iceland is one of the most gender-equal countries in the world. Its welfare policies enable both men and women to balance work and family life. Iceland lagged its Nordic neighbors in introducing new childcare policies, and even when they did in the 1990s, parents still faced a childcare gap between the paid parental leave period and the start of pre-school.
The female labor participation rate continued to grow from the 1960s to the 2000s, as women’s educational attainment increased. Icelanders are marrying later, if they marry at all, and people are having children later. The interval between births has decreased. Non-marital cohabitation and childbearing outside of marriage are common.
Approximately 2 out of 3 children are born out of wedlock, which is among the highest in Europe. Iceland’s total fertility rate (TFR) has been fairly stable, hovering around replacement level (2.1 children per woman), for decades – a rate higher even than its Nordic neighbors.
Iceland has fluctuated over time between being a country of net emigration and one of net immigration. Most Icelandic emigrants return to their native country after a few years. From 1960 to 1996, Iceland registered a net outflow, followed by a net inflow until the 2008 banking crisis.
During and after the crisis, more Icelanders left the country than immigrated to it. Following the crisis, Iceland returned to being a country of net immigration. In 2017, the country’s foreign-born population accounted for 11% of the population and 17% had an immigrant background.
The countries of origin have become more diverse over time, with Polish immigrants composing the largest share in 2017. Foreigners acquiring Icelandic citizenship must have a basic comprehension of the Icelandic language. The requirement that new citizens modify or change their names to be more Icelandic was dropped in 1996. The most popular emigration destination was Sweden, followed by Denmark and Norway in 2021.
Population distribution
- Iceland is almost entirely urban with half of the population located in and around the capital of Reykjavik;
- smaller clusters are primarily found along the coast in the north and west
Sex ratio
- at birth:
- 1.05 male(s)/female
- 0-14 years:
- 1.04 male(s)/female
- 15-64 years:
- 1.02 male(s)/female
- 65 years and over:
- 0.9 male(s)/female
- total population:
- 1 male(s)/female (2024 est.)
Infant mortality rate
- total:
- 1.6 deaths/1,000 live births (2024 est.)
- male:
- 1.8 deaths/1,000 live births
- female:
- 1.4 deaths/1,000 live births
Alcohol consumption per capita
- total:
- 7.72 liters of pure alcohol (2019 est.)
- beer:
- 4.39 liters of pure alcohol (2019 est.)
- wine:
- 2.11 liters of pure alcohol (2019 est.)
- spirits:
- 1.22 liters of pure alcohol (2019 est.)
- other alcohols:
- 0 liters of pure alcohol (2019 est.)
Environment
12 fieldsLand use(2018 est.)
Environment - international agreements
- party to:
- Air Pollution, Air Pollution-Persistent Organic Pollutants, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Comprehensive Nuclear Test Ban, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping-London Convention, Marine Dumping-London Protocol, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling
- signed, but not ratified:
- Air Pollution-Heavy Metals, Environmental Modification, Marine Life Conservation
Urbanization
- urban population:
- 94% of total population (2023)
- rate of urbanization:
- 0.74% annual rate of change (2020-25 est.)
Air pollutants
- particulate matter emissions:
- 5.79 micrograms per cubic meter (2019 est.)
- carbon dioxide emissions:
- 2.06 megatons (2016 est.)
- methane emissions:
- 0.59 megatons (2020 est.)
Waste and recycling
- municipal solid waste generated annually:
- 525,000 tons (2015 est.)
- municipal solid waste recycled annually:
- 293,003 tons (2013 est.)
- percent of municipal solid waste recycled:
- 55.8% (2013 est.)
Total water withdrawal
- municipal:
- 80 million cubic meters (2020 est.)
- industrial:
- 200 million cubic meters (2020 est.)
- agricultural:
- 300,000 cubic meters (2017 est.)
Geoparks
- total global geoparks and regional networks:
- 2
- global geoparks and regional networks:
- Katla; Reykjanes (2023)
Government
Unitary parliamentary republic; President Halla TOMASDOTTIR (since 1 August 2024); Prime Minister Bjarni BENEDIKTSSON (since 9 April 2024)
22 fieldsPresidential electionpercent of vote
Althingi or Parliament, 63 seats, elected 30 November 2024one dot, one seat
Composition: men 34, women 29
Country name
- conventional long form:
- none
- conventional short form:
- Iceland
- local long form:
- none
- local short form:
- Island
- etymology:
- Floki VILGERDARSON, an early Norse explorer of the island (9th century), applied the name "Land of Ice" after spotting a fjord full of drift ice to the north and spending a bitter winter on the island;
- he eventually settled on the island, however, after he saw how it greened up in the summer and that it was, in fact, habitable
Capital
- name:
- Reykjavik
- geographic coordinates:
- 64 09 N, 21 57 W
- time difference:
- UTC 0 (5 hours ahead of Washington, DC, during Standard Time)
- etymology:
- the name means "smoky bay" in Icelandic and refers to the steamy, smoke-like vapors discharged by hot springs in the area
Administrative divisions
64 municipalities (sveitarfelog, singular - sveitarfelagidh); Akranes, Akureyri, Arneshreppur, Asahreppur, Blaskogabyggdh, Bolungarvik, Borgarbyggdh, Dalabyggdh, Dalvikurbyggdh, Eyjafjardharsveit, Eyja-og Miklaholtshreppur, Fjallabyggdh, Fjardhabyggdh, Fljotsdalshreppur, Floahreppur, Gardhabaer, Grimsnes-og Grafningshreppur, Grindavikurbaer, Grundarfjardharbaer, Grytubakkahreppur, Hafnarfjordhur, Horgarsveit, Hrunamannahreppur, Hunathing Vestra, Hunabyggdh, Hvalfjardharsveit, Hveragerdhi, Isafjardharbaer, Kaldrananeshreppur, Kjosarhreppur, Kopavogur, Langanesbyggdh, Mosfellsbaer, Mulathing, Myrdalshreppur, Nordhurthing, Rangarthing Eystra, Rangarthing Ytra, Reykholahreppur, Reykjanesbaer, Reykjavik, Seltjarnarnes, Skaftarhreppur, Skagabyggdh, Skagafjordhur, Skeidha-og Gnupverjahreppur, Skorradalshreppur, Snaefellsbaer, Strandabyggdh, Stykkisholmur, Sudhavikurhreppur, Sudhurnesjabaer, Svalbardhsstrandarhreppur, Sveitarfelagidh Arborg, Sveitarfelagidh Hornafjordhur, Sveitarfelagidh Olfus, Sveitarfelagidh Skagastrond, Sveitarfelagidh Vogar, Talknafjardharhreppur, Thingeyjarsveit, Tjorneshreppur, Vestmannaeyjar, Vesturbyggdh, Vopnafjardharhreppur
Independence
- 1 December 1918 (became a sovereign state under the Danish Crown);
- 17 June 1944 (from Denmark; birthday of Jon SIGURDSSON, leader of Iceland's 19th Century independence movement)
Constitution
- history:
- several previous; latest ratified 16 June 1944, effective 17 June 1944 (at independence)
- amendments:
- proposed by the Althingi;
- passage requires approval by the Althingi and by the next elected Althingi, and confirmation by the president of the republic;
- proposed amendments to Article 62 of the constitution – that the Evangelical Lutheran Church shall be the state church of Iceland – also require passage by referendum;
- amended many times, last in 2013
International law organization participation
has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction
Citizenship
- citizenship by birth:
- no
- citizenship by descent only:
- at least one parent must be a citizen of Iceland
- dual citizenship recognized:
- yes
- residency requirement for naturalization:
- 3 to 7 years
Executive branch
- chief of state:
- President Halla TOMASDOTTIR (since 1 August 2024)
- head of government:
- Prime Minister Bjarni BENEDIKTSSON (since 9 April 2024)
- cabinet:
- Cabinet appointed by the president upon the recommendation of the prime minister
- elections/appointments:
- president directly elected by simple majority popular vote for a 4-year term (no term limits);
- election last held on 1 June 2024 (next to be held in June 2028);
- following legislative elections, the leader of the majority party or majority coalition becomes prime minister
- election results:
- 2024: percent of vote - Halla TOMASDOTTIR (independent) 34.1%, Katrin JAKOBSDOTTIR (Left-Green Movement) 25.2%, Halla Hrund LOGADOTTIR (independent) 15.7%, Jon GNARR (Social Democratic Alliance) 10.1%, Baldur PORHALLSSON (independent) 8.4%, other 6.5%; ;
- 2020: Gudni Thorlacius JOHANNESSON reelected president;
- percent of vote - Gudni Thorlacius JOHANNESSON (independent) 92.2%, Gudmundur Franklin JONSSON (independent) 7.8%
- 2016: Gudni Thorlacius JOHANNESSON elected president;
- Gudni Thorlacius JOHANNESSON (independent) 39.1%, Halla TOMASDOTTIR (independent) 27.9%, Andri Snær MAGNASON (Democracy Movement) 14.3%, David ODDSSON (independent) 13.7%, other 5%
Legislative branch
- description:
- unicameral Althingi or Parliament (63 seats; members directly elected in multi-seat constituencies by closed-list proportional representation vote using the D'Hondt method; members serve 4-year terms)
- elections:
- last held on 30 November 2024 (next to be held by 30 November 2028)
- election results:
- seats by party - SDA 15, IP 14, Reform Party 11, People's Party 10, CP 8, PP 5;
- composition - men 34, women 29;
- percentage women 46%
Judicial branch
- highest court(s):
- Supreme Court or Haestirettur (consists of 7 judges)
- judge selection and term of office:
- judges proposed by Ministry of Interior selection committee and appointed by the president; judges appointed for an indefinite period
- subordinate courts:
- Appellate Court or Landsrettur;
- 8 district courts;
- Labor Court
Political parties
- Centrist Party (Midflokkurinn) or CP
- Independence Party (Sjalfstaedisflokkurinn) or IP
- Left-Green Movement (Vinstrihreyfingin-graent frambod) or LGM
- People's Party (Flokkur Folksins)
- Pirate Party (Piratar)
- Progressive Party (Framsoknarflokkurinn) or PP
- Reform Party (Vidreisn)
- Social Democratic Alliance (Samfylkingin) or SDA
International organization participation
Arctic Council, Australia Group, BIS, CBSS, CD, CE, EAPC, EBRD, EFTA, FAO, FATF, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NATO, NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UPU, WCO, WHO, WIPO, WMO, WTO
Diplomatic representation in the US
- chief of mission:
- Ambassador Svanhildur Hólm VALSDÓTTIR (since 18 September 2024)
- chancery:
- House of Sweden, 2900 K Street NW, #509, Washington, DC 20007
- telephone:
- [1] (202) 265-6653
- FAX:
- [1] (202) 265-6656
- email address and website:
- [email protected]; https://www.government.is/diplomatic-missions/embassy-of-iceland-in-washington-d.c/
Diplomatic representation from the US
- chief of mission:
- Ambassador Carrin F. PATMAN (since 6 October 2022)
- embassy:
- Engjateigur 7, 105 Reykjavik
- mailing address:
- 5640 Reykjavik Place, Washington, D.C. 20521-5640
- telephone:
- [354] 595-2200
- FAX:
- [354] 562-9118
- email address and website:
- [email protected]; https://is.usembassy.gov/
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
National anthem
- name:
- "Lofsongur" (Song of Praise)
- lyrics/music:
- Matthias JOCHUMSSON/Sveinbjorn SVEINBJORNSSON
note: adopted 1944; also known as "O, Gud vors lands" (O, God of Our Land), the anthem was originally written and performed in 1874
National heritage
- total World Heritage Sites:
- 3 (1 cultural, 2 natural)
- selected World Heritage Site locales:
- Thingvellir National Park (c);
- Surtsey (n);
- Vatnajökull National Park - Dynamic Nature of Fire and Ice (n)
Economy
31 fieldsTrading partnersexports left, imports right
By end use% of GDP · (2023 est.)
Budget(2022 est.)
Economic overview
- high-income north Atlantic island economy;
- non-EU member but market integration via European Economic Area (EEA);
- dominant tourism, fishing, and aluminum industries vulnerable to demand swings and volcanic activity;
- inflation remains above target rate;
- barriers to foreign business access and economic diversification
Credit ratings
- Fitch rating:
- A (2017)
- Moody's rating:
- A2 (2019)
Standard & Poors rating: A (2017)
note: The year refers to the year in which the current credit rating was first obtained.
GDP - composition, by sector of origin
- agriculture:
- 3.9% (2023 est.)
- industry:
- 21% (2023 est.)
- services:
- 64.6% (2023 est.)
note: figures may not total 100% due to non-allocated consumption not captured in sector-reported data
Agricultural products
milk, chicken, barley, lamb/mutton, potatoes, pork, beef, eggs, other meats, cucumbers/gherkins (2022) note: top ten agricultural products based on tonnage
Industries
- tourism, fish processing;
- aluminum smelting;
- geothermal power, hydropower;
- medical/pharmaceutical products
Labor force
239,000 (2023 est.) note: number of people ages 15 or older who are employed or seeking work
Unemployment rate
3.56% (2023 est.) · 3.79% (2022 est.) · 6.03% (2021 est.) note: % of labor force seeking employment
Youth unemployment rate (ages 15-24)
- total:
- 9.2% (2023 est.)
- male:
- 10.5% (2023 est.)
- female:
- 7.9% (2023 est.)
note: % of labor force ages 15-24 seeking employment
Population below poverty line
8.8% (2017 est.) note: % of population with income below national poverty line
Gini Index coefficient - distribution of family income
26.1 (2017 est.) note: index (0-100) of income distribution; higher values represent greater inequality
Remittances
0.66% of GDP (2023 est.) · 0.67% of GDP (2022 est.) · 0.74% of GDP (2021 est.) note: personal transfers and compensation between resident and non-resident individuals/households/entities
Taxes and other revenues
22.52% (of GDP) (2022 est.) note: central government tax revenue as a % of GDP
Current account balance
$324.663 million (2023 est.) · -$498.416 million (2022 est.) · -$687.447 million (2021 est.) note: balance of payments - net trade and primary/secondary income in current dollars
Exports
$13.49 billion (2023 est.) · $13.109 billion (2022 est.) · $9.606 billion (2021 est.) note: balance of payments - exports of goods and services in current dollars
Exports - commodities
fish, aluminum, iron alloys, aluminum wire, animal meal (2022) note: top five export commodities based on value in dollars
Imports
$13.484 billion (2023 est.) · $13.146 billion (2022 est.) · $10.065 billion (2021 est.) note: balance of payments - imports of goods and services in current dollars
Imports - commodities
refined petroleum, aluminum oxide, cars, carbon-based electronics, aircraft (2022) note: top five import commodities based on value in dollars
Reserves of foreign exchange and gold
$5.809 billion (2023 est.) · $5.887 billion (2022 est.) · $7.079 billion (2021 est.) note: holdings of gold (year-end prices)/foreign exchange/special drawing rights in current dollars
Exchange rates
Icelandic kronur (ISK) per US dollar - 137.943 (2023 est.) · 135.28 (2022 est.) · 126.989 (2021 est.) · 135.422 (2020 est.) · 122.607 (2019 est.)
Energy
6 fieldsElectrification% of population · (2022 est.)
Installed generating capacity, 3.006 million kW(2022 est.)
Coal
- consumption:
- 188,000 metric tons (2022 est.)
- exports:
- (2022 est.) less than 1 metric ton
- imports:
- 113,000 metric tons (2022 est.)
Carbon dioxide emissions
3.579 million metric tonnes of CO2 (2022 est.)
- from coal and metallurgical coke:
- 514,000 metric tonnes of CO2 (2022 est.)
- from petroleum and other liquids:
- 3.065 million metric tonnes of CO2 (2022 est.)
Communications
7 fieldsPer 100 inhabitants(2020–22 est.)
Telecommunication systems
- general assessment:
- Iceland has one of the smallest yet most progressive telecom markets in Europe;
- the country in 2020 became the top in Europe for fiber penetration;
- it aims to provide a fixed broadband service of at least 100Mb/s to 99.9% of the population by the end of 2021, an ambitious target by international standards and one which it is likely to achieve given the progress which operators have made in extending the reach of fiber networks;
- there is effective competition in the mobile and broadband markets, with a number of players having emerged to challenge the dominance of the two leading operators which have interests across the telecom sectors;
- the telecom market has shown some resilience in recent years following the significant economic downturn a decade ago, supported by continuing investment in mobile and fixed-line broadband infrastructure by operators and well as by the government’s Telecommunications Fund which is supporting Next Generation Access networks, particularly in rural areas (2022)
- domestic:
- 27 per 100 for fixed line and nearing 118 per 100 for mobile-cellular subscriptions (2021)
- international:
- country code - 354;
- landing points for the CANTAT-3, FARICE-1, Greenland Connect and DANICE submarine cable system that provides connectivity to Canada, the Faroe Islands, Greenland, UK, Denmark, and Germany;
- 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) (2019)
Broadcast media
state-owned public TV broadcaster (RUV) operates 21 TV channels nationally (RUV and RUV 2, though RUV 2 is used less frequently); RUV broadcasts nationally, every household in Iceland is required to have RUV as it doubles as the emergency broadcast network; RUV also operates stringer offices in the north (Akureyri) and the east (Egilsstadir) but operations are all run out of RUV headquarters in Reykjavik;
there are 3 privately owned TV stations; Stod 2 (Channel 2) is owned by Syn, following 365 Media and Vodafone merger, and is headquartered in Reykjavik; Syn also operates 4 sports channels under Stod 2; N4 is the only television station headquartered outside of Reykjavik, in Akureyri, with local programming for the north, south, and east of Iceland;
Hringbraut is the newest station and is headquartered in Reykjavik; all of these television stations have nationwide penetration as 100% of households have multi-channel services though digital and/or fiber-optic connections RUV operates 3 radio stations (RAS 1, RAS2, and Rondo) as well as 4 regional stations (but they mostly act as range extenders for RUV radio broadcasts nationwide);
there is 1 privately owned radio conglomerate, Syn (4 stations), that broadcasts nationwide, and 3 other radio stations that broadcast to the most densely populated regions of the country. In addition, there are upwards of 20 radio stations that operate regionally (2019)
Transportation
7 fieldsMerchant marine, 39 ships by typeone square, one ship · (2023)
National air transport system
- number of registered air carriers:
- 6 (2020); inventory of registered aircraft operated by air carriers: 63
- annual passenger traffic on registered air carriers:
- 7,819,740 (2018)
- annual freight traffic on registered air carriers:
- 163.65 million (2018) mt-km
Ports
- total ports:
- 43 (2024)
- large:
- 0
- medium:
- 2
- small:
- 2
- very small:
- 17
- size unknown:
- 22
- ports with oil terminals:
- 5
- key ports:
- Grundartangi, Reykjavik, Seydhisfjordhur, Vestmannaeyjar
Military and Security
3 fieldsMilitary and security forces
no regular military forces; the Icelandic National Police, the nine regional police forces, and the Icelandic Coast Guard fall under the purview of the Ministry of Justice (2024) note: the Icelandic Coast Guard is responsible for operational defense tasks in Iceland including but not limited to operation of Keflavik Air Base, special security zones, and Iceland's air defense systems
Military equipment inventories and acquisitions
the Icelandic Coast Guard's inventory consists of equipment from mostly European suppliers (2024)
Military - note
Iceland was one of the original 12 countries to sign the North Atlantic Treaty (also known as the Washington Treaty) in 1949; Iceland is the only NATO member that has no standing military force; defense of Iceland remains a NATO commitment and NATO maintains an air policing presence in Icelandic airspace; Iceland participates in international peacekeeping missions with the civilian-manned Icelandic Crisis Response Unit (ICRU)
Iceland cooperates with the militaries of other Nordic countries through the Nordic Defense Cooperation (NORDEFCO), which consists of Denmark, Finland, Iceland, Norway, and Sweden; areas of cooperation include armaments, education, human resources, training and exercises, and operations; NORDEFCO was established in 2009
in 1951, Iceland and the US concluded an agreement to make arrangements regarding the defense of Iceland and for the use of facilities in Iceland to that end; the agreement, along with NATO membership, is one of the two pillars of Iceland‘s security policy; since 2007 Iceland has concluded cooperation agreements with Canada, Denmark, Norway, and the UK; it also has regular consultations with Germany and France on security and defense (2024)
Transnational Issues
1 fieldCite this entry
Central Intelligence Agency. “Iceland.” The World Factbook 2024. Archived by The Factbook, thefactbook.org/iceland/2024.