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.

Map reference: Arctic Region, Europe, North America, Standard Time Zones of the World

Area
Total: 103,000 km²
Land: 100,250 km²

Coastline: 4,988 km
Continental shelf: 200 nm or the edge of continental margin
Exclusive 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, hydropower, geothermal power, diatomite

Land use
Arable land: 1%
Permanent crops: 0%
Meadows and pastures: 20%
Forest and woodland: 1%
Other: 78%

Irrigated land: NA km²

Population: 261,270 (July 1993 est.)
Growth rate: 0.88% (1993 est.)

Nationality
Noun: Icelander(s)
Adjective: Icelandic

Ethnic groups:

Languages: Icelandic

Religions: Evangelical Lutheran 96%, other Protestant and Roman Catholic 3%, none 1% (1988)

Population growth rate: 0.88% (1993 est.)

Birth rate: 16.99 births/1000 population (1993 est.)

Death rate: 6.74 deaths/1000 population (1993 est.)

Net migration rate: -1.47 migrant(s)/1000 population (1993 est.)

Environment
Current issues: subject to earthquakes and volcanic activity
Current issues note: strategic location between Greenland and Europe; westernmost European country; more land covered by glaciers than in all of continental Europe

Infant mortality rate: 4 deaths/1000 live births (1993 est.)

Life expectancy at birth
Male: 76.45 years
Female: 81.04 years (1993 est.)

Total fertility rate: 2.16 children born/woman (1993 est.)

Literacy: age 15 and over can read and write (1976)
Total population: 100%
Male: NA%
Female: NA%

Country name
Conventional long form: Republic of Iceland
Conventional short form: Iceland
Local long form: Lyoveldio Island
Local short form: Island

Government type: republic

Capital: Reykjavik

Administrative divisions:

Independence: 17 June 1944 (from Denmark)

National holiday:

Constitution: 16 June 1944, effective 17 June 1944

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

Suffrage: 18 years of age; universal

Executive branch: president, prime minister, Cabinet

Legislative branch: unicameral Parliament (Althing)

Judicial branch: Supreme Court (Haestirettur)

International organization participation:

Diplomatic representation
In the us chief of mission: (vacant)
In the us chancery: 2022 Connecticut Avenue NW, Washington DC 20,008
In the us telephone: (202) 265-6,653 through 6,655
In the us consulate general: New York
From the us chief of mission: (vacant); Charge d'Affaires Jon GUNDERSEN
From the us embassy: Laufasvegur 21, Box 40, Reykjavik
From the us mailing address: USEMB, PSC 1003, Box 40, FPO AE 9,728-0340
From the us telephone: 354 (1) 29,100
From the us fax: 354 (1) 29,139

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 Scandinavian-type economy is basically capitalistic, but with an extensive welfare system, relatively low unemployment, and comparatively even distribution of income. The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings and employs 12% of the workforce. In the absence of other natural resources - except energy - Iceland's economy is vulnerable to changing world fish prices. Iceland's economy has been in recession since 1988. The recession deepened in 1992 due to severe cutbacks in fishing quotas and falling world prices for the country's main exports: fish and fish products, aluminum, and ferrosilicon. Real GDP declined 3.3% in 1992 and is forecast to contract another 1.5% in 1993. The center-right government's economic goals include reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy, and privatizing state-owned industries. The recession has led to a wave of bankruptcies and mergers throughout the economy, as well as the highest unemployment of the post-World War II period. The national unemployment rate reached 5% in early 1993, with some parts of the country experiencing unemployment in the 9-10% range. Inflation, previously a serious problem, declined from double digit rates in the 1980s to only 3.7% in 1992.

Real gdp growth rate: -3.3% (1992)

Real gdp per capita: $17,400 (1992)

Agriculture products: accounts for about 25% of GDP; fishing is most important economic activity, contributing nearly 75% to export earnings; principal crops - potatoes, turnips; livestock - cattle, sheep; self-sufficient in crops; fish catch of about 1.4 million metric tons in 1989

Industries: fish processing, aluminum smelting, ferro-silicon production, geothermal power

Industrial production growth rate: growth rate 1.75% (1991 est.)

Labor force: 127,900
By occupation commerce transportation and services: 60.0%
By occupation manufacturing: 12.5%
By occupation fishingandfishprocessing: 11.8%
By occupation construction: 10.8%
By occupation agriculture: 4.0% (1990)

Unemployment rate: 5% (first quarter 1993)

Budget: revenues $1.8 billion; expenditures $1.9 billion, including capital expenditures of $191 million (1992)

Fiscal year: calendar year

Exports: $1.5 billion (f.o.b., 1992)
Commodoties: fish and fish products, animal products, aluminum, ferrosilicon, diatomite
Partners: EC 53% (Germany 14%, Denmark 10%, UK 9%), Norway 14%, US 9% (1992)

Imports: $1.5 billion (c.i.f., 1992)
Commodoties: machinery and transportation equipment, petroleum products, foodstuffs, textiles

Exchange rates: Icelandic kronur (IKr) per US$1 - 63.789 (January 1993), 57.546 (1992), 58.996 (1991), 58.284 (1990), 57.042 (1989), 43.014 (1988)

Electricity
Production: 1,063,000 kW capacity; 5,165 million kWh produced, 19,940 kWh per capita (1992)

Military expenditures
Percent of gdp: none

Airports: 90
Usable: 84
With permanentsurface runways: 8
With runways over 3659 m: 0
With runways 2440-3659 m: 1
With runways 1220-2439 m: 12

Merchant marine:

Disputes international: