Background: Iceland boasts the oldest surviving parliament in the world, the Althing, established in 930. Subsequently this Nordic island, whose small population has largely depended on fishing and sheep-herding for a living, came under the rule of Norway and then Denmark. It gained home rule in 1874 and full independence in 1944. Literacy, longevity, and social cohesion are topnotch by world standards. Tensions continue with Norway, Russia, and other nearby countries over fishing rights in the North Atlantic and adjacent seas.

Land boundaries: none

Coastline: 4,988 km

Maritime claims
Continental shelf: edge of continental margin or 200 nm
Extended economic zone: 200 nm
Territorial sea: 12 nm

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, hydroelectric and geothermal power, diatomite

Land use: NEGL% arable land; 0% permanent crops; 23% meadows and pastures; 1% forest and woodland; 76% other

Geography
Note: strategic location between Greenland and Europe; westernmost European country

Population: 257,023 (July 1990), growth rate 1.1% (1990)

Nationality: noun--Icelander(s; adjective--Icelandic

Ethnic groups: homogeneous mixture of descendants of Norwegians and Celts

Languages: Icelandic

Religions: 95% Evangelical Lutheran, 3% other Protestant and Roman Catholic, 2% no affiliation

Birth rate: 18 births/1000 population (1990)

Death rate: 7 deaths/1000 population (1990)

Net migration rate: 0 migrants/1000 population (1990)

Environment
Current issues: subject to earthquakes and volcanic activity

Infant mortality rate: 7 deaths/1000 live births (1990)

Life expectancy at birth: 75 years male, 80 years female (1990)

Total fertility rate: 2.2 children born/woman (1990)

Literacy: 100%

Country name: conventional long form: Republic of Iceland

Government type: republic

Capital: Reykjavik

Administrative divisions: 23 counties (syslar, singular--sysla) and 14 independent towns* (kaupstadar, singular--kaupstadur; Akranes*, Akureyri*, Arnessysla, Austur-Bardhastrandarsysla, Austur-Hunavatnssysla, Austur-Skaftafellssysla, Borgarfjardharsysla, Dalasysla, Eyjafjardharsysla, Gullbringusysla, Hafnarfjordhur*, Husavik*, Isafjordhur*, Keflavik*, Kjosarsysla, Kopavogur*, Myrasysla, Neskaupstadhur*, Nordhur-Isafjardharsysla, Nordhur-Mulasysla, Nordhur-Thingeyjarsysla, Olafsfjordhur*, Rangarvallasysla, Reykjavik*, Saudharkrokur*, Seydhisfjordhur*, Siglufjordhur*, Skagafjardharsysla, Snaefellsnes-og Hanppadalssysla, Strandasysla, Sudhur-Mulasysla, Sudhur-Thingeyjarsysla, Vestmannaeyjar*, Vestur-Bardhastrandarsysla, Vestur-Hunavatnssysla, Vestur-Isafjardharsysla, Vestur-Skaftafellssysla

Independence: 17 June 1944 (from Denmark)

National holiday: Anniversary of the Establishment of the Republic, 17 June (1944)

Constitution: 16 June 1944, effective 17 June 1944

Legal system: civil law system based on Danish law; does not accept compulsory ICJ jurisdiction

Suffrage: universal at age 20

Executive branch: Chief of State--President Vigdis FINNBOGADOTTIR (since 1 August 1980; Head of Government--Prime Minister Steingrimur HERMANNSSON (since 28 September 1988)

Legislative branch: Police, Coast Guard

Judicial branch: Supreme Court (Haestirettur)

International organization participation: CCC, Council of Europe, EC (free trade agreement pending resolution of fishing limits issue), EFTA, FAO, GATT, IAEA, IBRD, ICAO, ICES, IDA, IFC, IHO, ILO, IMF, IMO, INTELSAT, INTERPOL, IPU, ITU, IWC--International Whaling Commission, NATO, Nordic Council, OECD, UN, UNESCO, UPU, WHO, WMO, WSG

Diplomatic representation
In the us: Ambassador Ingvi S. INGVARSSON; Chancery at 2022 Connecticut Avenue NW, Washington DC 20,008; telephone (202) 265-6,653 through 6,655; there is an Icelandic Consulate General in New York; US--Ambassador Charles E. COBB; Embassy at Laufasvegur 21, Reykjavik (mailing address is FPO New York 9,571-0001; telephone p354o (1) 29,100

Flag description: blue with a red cross outlined in white that extends 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)

Economy overview: Iceland's prosperous Scandinavian-type economy is basically capitalistic, but with extensive welfare measures, low unemployment, and comparatively even distribution of income. The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings. In the absence of other natural resources, Iceland's economy is vulnerable to changing world fish prices. National output declined for the second consecutive year in 1989, and two of the largest fish farms filed for bankruptcy. Other economic activities include livestock raising and aluminum smelting. A fall in the fish catch is expected for 1990, resulting in a continuation of the recession.

Agriculture products: accounts for about 25% of GDP (including fishing; fishing is most important economic activity, contributing nearly 75% to export earnings; principal crops--potatoes and turnips; livestock--cattle, sheep; self-sufficient in crops; fish catch of about 1.6 million metric tons in 1987

Industries: fish processing, aluminum smelting, ferro-silicon production, hydropower

Industrial production growth rate: 4.7% (1987 est.)

Labor force: 134,429; 55.4% commerce, finance, and services, 14.3% other manufacturing, 5.8% agriculture, 7.9% fish processing, 5.0% fishing (1986)

Unemployment rate: 1.3% (1989 est.)

Budget: revenues $1.5 billion; expenditures $1.7 billion, including capital expenditures of $NA million (1988)

Fiscal year: calendar year

Exports: $1.4 billion (f.o.b., 1988)
Commodities: fish and fish products, animal products, aluminum, diatomite
Partners: EC 58.9% (UK 23.3%, FRG 10.3%), US 13.6%, USSR 3.6%

Imports: $1.6 billion (c.i.f., 1988)
Commodities: machinery and transportation equipment, petroleum, foodstuffs, textiles
Partners: EC 58% (FRG 16%, Denmark 10.4%, UK 9.2%), US 8.5%, USSR 3.9%

Debt external: $1.8 billion (1988)

Exchange rates: Icelandic kronur (IKr) per US$1--60.751 (January 1990), 57.042 (1989), 43.014 (1988), 38.677 (1987), 41.104 (1986), 41.508 (1985)

Electricity
Capacity: 1,063,000 kW capacity; 5,165 million kWh produced, 20,780 kWh per capita (1989)

Military expenditures
Percent of gdp: none

Airports: 99 total, 92 usable; 4 with permanent-surface runways; none with runways over 3,659 m; 1 with runways 2,440-3,659 m; 14 with runways 1,220-2,439 m

Merchant marine: 18 ships (1,000 GRT or over) totaling 62,867 GRT/87,610 DWT; includes 9 cargo, 2 refrigerated cargo, 1 container, 2 roll-on/roll-off cargo, 1 petroleum, oils, and lubricants (POL) tanker, 1 chemical tanker, 2 bulk

Disputes international: Rockall continental shelf dispute involving Denmark, Ireland, and the UK (Ireland and the UK have signed a boundary agreement in the Rockall area)