Iceland

Location

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

Population

Notable Population Centers

City	Population	Note
Reykjavík	118,918	Capital
Kópavogur	37,959
Hafnarfjörður	29,971
Reykjanesbær	19,724
Akureyri	19,219
Keflavík	15,930

Size

• 39,768 square miles
• 103,000 square kilometers
• slightly smaller than Pennsylvania; about the same size as Kentucky

History

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.

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

Languages

Icelandic, English, Polish, Nordic languages, German

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.)

Government

unitary parliamentary republic

• Constitution: history: several previous; latest ratified 16 June 1944, effective 17 June 1944 (at independence)amendment process: 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
• Political Parties and Leaders: n/a
• Suffrage: 18 years of age; universal
• Legal System: civil law system influenced by the Danish model
• Executive Branch: chief of state: President Halla TOMASDOTTIR (since 1 August 2024)head of government: Prime Minister Kristrun FROSTADOTTIR (since 21 December 2024)cabinet: Cabinet appointed by the president upon the recommendation of the prime ministerelection/appointment process: president directly elected by simple-majority popular vote for a 4-year term (no term limits); following legislative elections, the leader of the majority party or majority coalition becomes prime ministermost recent election date: 1 June 2024election results: 2024: Halla TOMASDOTTIR elected president; 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%expected date of next election: June 2028
• 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 for an indefinite periodsubordinate courts: Appellate Court or Landsrettur; 8 district courts; Labor Court
• Legislative Branch: legislature name: Parliament (Althingi)legislative structure: unicameralnumber of seats: 63 (all directly elected)electoral system: proportional representationscope of elections: full renewalterm in office: 4 yearsmost recent election date: 11/30/2024parties elected and seats per party: Social Democratic Alliance (S) (15); Independence Party (D) (14); Liberal Reform Party (C) (11); People’s Party (F) (10); Center Party (M) (8); Progressive Party (B) (5)percentage of women in chamber: 46%expected date of next election: November 2028

Demographic Profile

n/a

Economy

• high-income North Atlantic island economy; not an EU member but market integration via European Economic Area (EEA); dominant tourism, fishing, and aluminum industries vulnerable to demand swings and disruption from volcanic activity; inflation remains above target rate; barriers to foreign business access and economic diversification
• Budget: revenues: $10.023 billion (2023 est.)expenditures: $10.364 billion (2023 est.)note: central government revenues (excluding grants) and expenditures converted to US dollars at average official exchange rate for year indicated
• Credit Rating: n/a
• Natural Resources: fish, hydropower, geothermal power, diatomite
• Industries: tourism, fish processing; aluminum smelting; geothermal power, hydropower; medical/pharmaceutical products
• Agricultural Products: milk, chicken, lamb/mutton, barley, potatoes, pork, beef, eggs, other meats, cucumbers/gherkins (2023)note: top ten agricultural products based on tonnage
• Land Use: agricultural land: 18.6% (2022 est.)arable land: 1.2% (2022 est.)permanent crops: 0% (2022 est.)permanent pasture: 17.4% (2022 est.)forest: 0.5% (2022 est.)other: 80.9% (2022 est.)
• Labor Force by Occupation: n/a
• Imports
• Imported Commodities: refined petroleum, cars, carbon-based electronics, aluminum oxide, computers (2023)note: top five import commodities based on value in dollars
• Import Partners: Norway 11%, China 9%, Germany 9%, Netherlands 8%, USA 7% (2023)note: top five import partners based on percentage share of imports
• Exports
• Exported Commodities: aluminum, fish, orthopedic appliances, animal meal, iron alloys (2023)note: top five export commodities based on value in dollars
• Export Partners: Netherlands 27%, Germany 11%, USA 10%, UK 8%, Norway 6% (2023)note: top five export partners based on percentage share of exports