Iceland

§1. Iceland Introduction

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, income, and social
  cohesion are first-rate by world standards.

§2. Iceland Geography

Location:
  Northern Europe, island between the Greenland Sea and the North Atlantic
  Ocean, northwest of the UK

Geographic coordinates:
  65 00 N, 18 00 W

Map references:
  Arctic_Region

Area:
  total: 103,000 km²
  land: 100,250 km²
  water: 2,750 km²

Area - comparative:
  slightly smaller than Kentucky

Land boundaries:
  0 km

Coastline:
  4,970 km

Maritime claims:
  territorial sea: 12 nm
  exclusive economic zone: 200 nm
  continental shelf: 200 nm or to the edge of the continental margin

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

Elevation extremes:
  lowest point: Atlantic Ocean 0 m
  highest point: Hvannadalshnukur 2,110 m (at Vatnajokull glacier)

Natural resources:
  fish, hydropower, geothermal power, diatomite

Land use:
  arable land: 0.07%
  permanent crops: 0%
  other: 99.93% (2005)

Irrigated land:
  NA

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
  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

§3. Iceland People

Population:
  299,388 (July 2006 est.)

Age structure:
  0-14 years: 21.7% (male 33,021/female 32,021)
  15-64 years: 66.5% (male 100,944/female 98,239)
  65 years and over: 11.7% (male 15,876/female 19,287) (2006 est.)

Median age:
  total: 34.2 years
  male: 33.8 years
  female: 34.7 years (2006 est.)

Population growth rate:
  0.87% (2006 est.)

Birth rate:
  13.64 births/1,000 population (2006 est.)

Death rate:
  6.72 deaths/1,000 population (2006 est.)

Net migration rate:
  1.74 migrant(s)/1,000 population (2006 est.)

Sex ratio:
  at birth: 1.04 male(s)/female
  under 15 years: 1.03 male(s)/female
  15-64 years: 1.03 male(s)/female
  65 years and over: 0.82 male(s)/female
  total population: 1 male(s)/female (2006 est.)

Infant mortality rate:
  total: 3.29 deaths/1,000 live births
  male: 3.43 deaths/1,000 live births
  female: 3.14 deaths/1,000 live births (2006 est.)

Life expectancy at birth:
  total population: 80.31 years
  male: 78.23 years
  female: 82.48 years (2006 est.)

Total fertility rate:
  1.92 children born/woman (2006 est.)

HIV/AIDS - adult prevalence rate:
  0.2% (2001 est.)

HIV/AIDS - people living with HIV/AIDS:
  220 (2001 est.)

HIV/AIDS - deaths:
  less than 100 (2003 est.)

Nationality:
  noun: Icelander(s)
  adjective: Icelandic

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

Religions:
  Lutheran Church of Iceland 85.5%, Reykjavik Free Church 2.1%, Roman
  Catholic Church 2%, Hafnarfjorour Free Church 1.5%, other Christian 2.7%,
  other or unspecified 3.8%, unaffiliated 2.4% (2004)

Languages:
  Icelandic, English, Nordic languages, German widely spoken

Literacy:
  definition: age 15 and over can read and write
  total population: 99%
  male: 99%
  female: 99% (2003 est.)

§4. Iceland Government

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:
  Reykjavik

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

Legal system:
  civil law system based on Danish law; has not accepted compulsory ICJ
  jurisdiction

Suffrage:
  18 years of age; universal

Executive branch:
  chief of state: President Olafur Ragnar GRIMSSON (since 1 August 1996)
  head of government: Prime Minister Halldor ASGRIMSSON (since 15 September
    2004)
  cabinet: Cabinet appointed by the prime minister
  elections: president, largely a ceremonial post, is elected by popular vote
    for a four-year term; election last held 26 June 2004 (next to be held
    June 2008); following legislative elections, the leader of the majority
    party or the leader of the majority coalition is usually the prime
    minister
  election results: 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 10 May 2003 (next to be held by May 2007)
  election results: percent of vote by party - Independence Party 33.7%,
    Social Democratic Alliance 31%, Progressive Party 17.7%, Left-Green
    Movement 8.8%, Liberal Party 7.4%; seats by party - Independence Party
    22, Social Democratic Alliance 20, Progressive Party 12, Left-Green
    Alliance 5, Liberal Party 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:
  Independence Party or IP [Geir HAARDE]; Left-Green Movement or LGM
  [Steingrimur SIGFUSSON]; Liberal Party or LP [Gudjon KRISTJANSSON];
  Progressive Party or PP [Halldor ASGRIMSSON]; Social Democratic Alliance
  (includes People's Alliance or PA, Social Democratic Party or SDP, Women's
  List) or SDA [Ingibjorg Solrun GISLADOTTIR]

Political pressure groups and leaders:
  NA

International organization participation:
  Arctic Council, Australia Group, BIS, CBSS, CE, EAPC, EBRD, EFTA, FAO,
  IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO,
  IMF, IMO, Interpol, IOC, IPU, ISO, ITU, MIGA, NATO, NC, NEA, NIB, OECD,
  OPCW, OSCE, PCA, UN, UNCTAD, UNESCO, UPU, WCO, WEU (associate), WHO, WIPO,
  WMO, WTO

Diplomatic representation in the US:
  chief of mission: Ambassador Helgi AGUSTSSON
  chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20005-1704
  telephone: [1] (202) 265-6653
  FAX: [1] (202) 265-6656
  consulate(s) general: New York

Diplomatic representation from the US:
  chief of mission: Ambassador Carol VAN VOORST
  embassy: Laufasvegur 21, 101 Reykjavik
  mailing address: US Embassy, PSC 1003, Box 40, FPO AE 09728-0340
  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)

§5. Iceland Economy

Economy - overview:
  Iceland's Scandinavian-type economy is basically capitalistic, yet with an
  extensive welfare system (including generous housing subsidies), low
  unemployment, and remarkably even distribution of income. In the absence of
  other natural resources (except for abundant geothermal power), the economy
  depends heavily on the fishing industry, which provides 70% of export
  earnings and employs 4% of the work force. The economy 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. Government policies
    include reducing the current account deficit, limiting foreign borrowing,
    containing inflation, revising agricultural and fishing policies, and
    diversifying the economy. The government remains opposed to EU
    membership, primarily because of Icelanders' concern about losing control
    over their fishing resources. Iceland's economy has been diversifying
    into manufacturing and service industries in the last decade, and new
    developments in software production, biotechnology, and financial
    services are taking place. The tourism sector is also expanding, with the
    recent trends in ecotourism and whale watching. Growth had been
    remarkably steady in 1996-2001 at 3%-5%, but could not be sustained in
    2002 in an environment of global recession. Growth resumed in 2003, and
    estimates call for strong growth until 2007, slowly dropping until the
    end of the decade.

GDP (purchasing power parity):
  $10.34 billion (2005 est.)

GDP (official exchange rate):
  $13.38 billion (2005 est.)

GDP - real growth rate:
  6.5% (2005 est.)

GDP - per capita (PPP):
  $34,900 (2005 est.)

GDP - composition by sector:
  agriculture: 11.8%
  industry: 22.3%
  services: 65.9% (2005 est.)

Labor force:
  165,900 (2005 est.)

Labor force - by occupation:
  agriculture, fishing and fish processing 10.3%, industry 18.3%, services
  71.4% (2003)

Unemployment rate:
  2.1% (2005 est.)

Population below poverty line:
  NA%

Household income or consumption by percentage share:
  lowest 10%: NA%
  highest 10%: NA%

Inflation rate (consumer prices):
  4.1% (2005 est.)

Investment (gross fixed):
  27.1% of GDP (2005 est.)

Budget:
  revenues: $6.995 billion
  expenditures: $6.761 billion; including capital expenditures of $467
    million (2005 est.)

Public debt:
  34% of GDP (2005 est.)

Agriculture - products:
  potatoes, green vegetables; mutton, dairy products; fish

Industries:
  fish processing; aluminum smelting, ferrosilicon production; geothermal
  power, tourism

Industrial production growth rate:
  14.2% (2005 est.)

Electricity - production:
  8.619 billion kWh (2004)

Electricity - consumption:
  8.619 billion kWh (2004)

Electricity - exports:
  0 kWh (2003)

Electricity - imports:
  0 kWh (2003)

Oil - production:
  0 bbl/day (2003 est.)

Oil - consumption:
  17,280 bbl/day (2003 est.)

Oil - exports:
  0 bbl/day (2001)

Oil - imports:
  15,470 bbl/day (2001)

Natural gas - production:
  0 m³ (2003 est.)

Natural gas - consumption:
  0 m³ (2003 est.)

Current account balance:
  $-2.009 billion (2005 est.)

Exports:
  $3.215 billion f.o.b. (2005 est.)

Exports - commodities:
  fish and fish products 70%, aluminum, animal products, ferrosilicon,
  diatomite

Exports - partners:
  UK 19.1%, Germany 17.3%, Netherlands 10.7%, US 9.3%, Spain 7%, Denmark
  4.8%, France 4.1% (2004)

Imports:
  $4.582 billion (2005 est.)

Imports - commodities:
  machinery and equipment, petroleum products, foodstuffs, textiles

Imports - partners:
  Germany 12.6%, US 10.1%, Norway 9.5%, Denmark 7.6%, UK 6.8%, Sweden 6.3%,
  Netherlands 5.7% (2004)

Reserves of foreign exchange and gold:
  $1.074 billion (2004 est.)

Debt - external:
  $3.073 billion (2002)

Economic aid - donor:
  $NA

Currency (code):
  Icelandic krona (ISK)

Exchange rates:
  Icelandic kronur per US dollar - 62.982 (2005), 70.192 (2004), 76.709
  (2003), 91.662 (2002), 97.425 (2001)

Fiscal year:
  calendar year

§6. Iceland Communications

Telephones - main lines in use:
  190,500 (2004)

Telephones - mobile cellular:
  290,100 (2004)

Telephone system:
  general assessment: extensive domestic service
  domestic: the trunk network consists of coaxial and fiber-optic cables and
    microwave radio relay links
  international: country code - 354; 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 (including repeaters), shortwave 1 (1998)

Television broadcast stations:
  14 (plus 156 low-power repeaters) (1997)

Internet country code:
  .is

Internet hosts:
  190,140 (2005)

Internet users:
  225,000 (2005)

§7. Iceland Transportation

Airports:
  97 (2005)

Airports - with paved runways:
  total: 5
  over 3,047 m: 1
  1,524 to 2,437 m: 3
  914 to 1,523 m: 1 (2005)

Airports - with unpaved runways:
  total: 92
  1,524 to 2,437 m: 3
  914 to 1,523 m: 29
  under 914 m: 60 (2005)

Roadways:
  total: 13,028 km
  paved/oiled gravel: 4,343 km
  unpaved: 8,685 km (2005)

Merchant marine:
  total: 2 ships (1000 GRT or over) 4,479 GRT/1,296 DWT
  by type: cargo 1, passenger/cargo 1
  registered in other countries: 30 (Antigua and Barbuda 7, Belize 1, Denmark
    1, Faroe Islands 3, Gibraltar 1, Malta 4, Norway 3, Saint Vincent and the
    Grenadines 10) (2005)

Ports and terminals:
  Grundartangi, Hafnarfjordur, Hornafjordhur, Reykjavik, Seydhisfjordhur

§8. Iceland Military

Military branches:
  no regular armed forces; Icelandic National Police, Icelandic Coast Guard
  (Islenska Landhelgisgaeslan)

Manpower available for military service:
  males age 18-49: 69,038 (2005 est.)

Manpower fit for military service:
  males age 18-49: 56,777 (2005 est.)

Military expenditures - dollar figure:
  0

Military expenditures - percent of GDP:
  0%

Military - note:
  defense is provided by the US-manned Icelandic Defense Force (IDF)
  headquartered at Keflavik

§9. Iceland Transnational Issues

Disputes - international:
  Iceland disputes Denmark's alignment of the Faroe Islands' fisheries median
  line; Iceland, the UK, and Ireland dispute Denmark's claim that the Faroe
  Islands' continental shelf extends beyond 200 nm


<Factbook 2006>
