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.

Geographic coordinates: 65 00 N, 18 00 W

Map reference: Arctic Region

Area
Total: 103,000 km²
Land: 100,250 km²
Water: 2,750 km²
Comparative: slightly smaller than Kentucky

Land boundaries: 0 km

Coastline: 4,988 km

Maritime claims
Continental shelf: 200 nm or to the edge of the 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

Elevation
Extremes lowest point: Atlantic Ocean 0 m
Extremes highest point: Hvannadalshnukur 2,119 m

Natural resources: fish, hydropower, geothermal power, diatomite

Land use
Arable land: 0%
Permanent crops: 0%
Permanent pastures: 23%
Forests and woodland: 1%
Other: 76% (1993 est.)

Irrigated land: NA km²

Natural hazards: earthquakes and volcanic activity

Geography
Note: strategic location between Greenland and Europe; westernmost European country; more land covered by glaciers than in all of continental Europe

Population: 269,697 (July 1997 est.)
Note: population data estimates based on average growth rate may differ slightly from official population data because of volatile migration rates
Growth rate: 0.47% (1997 est.)

Nationality
Noun: Icelander(s)
Adjective: Icelandic

Ethnic groups: homogeneous mixture of descendants of Norwegians and Celts

Languages: Icelandic

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

Age structure
0-14 years: 24% (male 32,931; female 31,390)
15-64 years: 64% (male 87,993; female 86,107)
65 years and over: 12% (male 14,107; female 17,169) (July 1997 est.)

Population growth rate: 0.47% (1997 est.)

Birth rate: 15.35 births/1000 population (1997 est.)

Death rate: 6.93 deaths/1000 population (1997 est.)

Net migration rate: -3.73 migrant(s)/1000 population (1997 est.)

Environment
Current issues: water pollution from fertilizer runoff; inadequate wastewater treatment

Sex ratio
At birth: 1.06 male(s)/female
Under 15 years: 1.05 male(s)/female
15-64 years: 1.02 male(s)/female
65 years and over: 0.82 male(s)/female
Total population: 1 male(s)/female (1997 est.)

Infant mortality rate: 5.3 deaths/1000 live births (1997 est.)

Life expectancy at birth
Total population: 78.73 years
Male: 76.68 years
Female: 80.9 years (1997 est.)

Total fertility rate: 2.05 children born/woman (1997 est.)

Literacy
Definition: age 15 and over can read and write
Total population: 100% (1976 est.)
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: constitutional republic

Capital: Reykjavik

Administrative divisions: 23 counties (syslar, singular - sysla) and 14 independent towns* (kaupstadhir, singular - kaupstadhur; Akranes*, Akureyri*, Arnessysla, Austur-Bardhastrandarsysla, Austur-Hunavatnssysla, Austur-Skaftafellssysla, Borgarfjardharsysla, Dalasysla, Eyjafjardharsysla, Gullbringusysla, Hafnarfjordhur*, Husavik*, Isafjordhur*, Keflavik*, Kjosarsysla, Kopavogur*, Myrasysla, Neskaupstadhur*, Nordhur-Isafjardharsysla, Nordhur-Mulasys-la, Nordhur-Thingeyjarsysla, Olafsfjordhur*, Rangarvallasysla, Reykjavik*, Saudharkrokur*, Seydhisfjordhur*, Siglufjordhur*, Skagafjardharsysla, Snaefellsnes-og Hnappadalssysla, Strandasysla, Sudhur-Mulasysla, Sudhur-Thingeyjarsysla, Vesttmannaeyjar*, 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: 18 years of age; universal

Executive branch
Chief of state: President Olafur Ragnar GRIMSSON (since 1 August 1996)
Head of government: Prime Minister David ODDSSON (since 30 April 1991)
Cabinet: Cabinet appointed by the president
Elections: president elected by popular vote for a four-year term; election last held 29 June 1996 (next to be held NA June 2000); prime minister appointed by the president
Election results: Olafur Ragnar GRIMSSON elected president; percent of vote - 41.4%

Legislative branch: unicameral Parliament or Althing (63 seats; members are elected by popular vote to serve four-year terms)
Elections: last held on 8 April 1995 (next to be held by April 1999)
Election results: percent of vote by party - Independence Party 37.1%, Progressive Party 23.3%, Social Democratic Party 11.4%, Socialists 14.3%, People's Movement 7.2%, Women's Party 4.9%; seats by party - Independence 25, Progressive 15, Social Democratic 7, Socialists 9, People's Movement 4, Women's Party 3

Judicial branch: Supreme Court or Haestirettur, justices are appointed for life by the president

International organization participation: Australia Group, BIS, CCC, CE, EBRD, ECE, EFTA, FAO, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, ISO, ITU, MTCR, NACC, NATO, NC, NEA, NIB, OECD, OSCE, PCA, UN, UNCTAD, UNESCO, UNU, UPU, WEU (associate), WHO, WIPO, WMO, WTrO

Diplomatic representation
In the us chief of mission: Ambassador Einar BENEDIKTSSON
In the us chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20,005
In the us telephone: [1] (202) 265-6,653 through 6,655
In the us FAX: [1] (202) 265-6,656
In the us consulates general: New York
From the us chief of mission: Ambassador Day Olin MOUNT (22 August 1996)
From the us embassy: Laufasvegur 21, Reykjavik
From the us mailing address: US Embassy, PSC 1003, Box 40, FPO AE 9,728-0340
From the us telephone: [354] 5,629,100
From the us FAX: [354] 5,629,118

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, yet with an extensive welfare system, low unemployment, and remarkably even distribution of income. The economy depends heavily on the fishing industry, which provides 75% of export earnings and employs 12% of the work force. In the absence of other natural resources - except energy - Iceland's economy is vulnerable to changing world fish prices. The economy remains sensitive to declining fish stocks as well as to drops in world prices for its main exports:fish and fish products, aluminum, and ferrosilicon. The center-right government plans to continue its policies of 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 government remains opposed to EU membership, primarily because of Icelanders' concern about losing control over their fishing resources.

Real gdp growth rate: 3.3% (1996 est.)

Real gdp per capita: purchasing power parity - $19,800 (1996 est.)

Gdp composition by sector of origin
Agriculture: 9.6%
Industry: 22.1%
Services: 68.3% (1991)

Agriculture products: potatoes, turnips; cattle, sheep; fish catch of about 1.1 million metric tons in 1992

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

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

Labor force
Total: 145,000 (1994)
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%
By occupation other: 0.9% (1990)

Unemployment rate: 5% (1996)

Budget
Revenues: $1.9 billion
Expenditures: $2.1 billion, including capital expenditures of $297 million (1994 est.)

Fiscal year: calendar year

Exports
Total value: $1.67 billion (f.o.b., 1995)
Commodities: fish and fish products 75%, animal products, aluminum, ferrosilicon, diatomite
Partners: UK 19%, Germany 14%, US 12%, Japan 11%, Denmark 8%, France 7% (1995)

Imports
Total value: $1.62 billion (f.o.b., 1995)
Commodities: machinery and transportation equipment, petroleum products, foodstuffs, textiles
Partners: Germany 11%, Norway 10%, UK 10%, Denmark 9%, US 8%, Sweden 7% (1995)

Debt external: $2.5 billion (1993 est.)

Exchange rates: Icelandic kronur (IKr) per US$1 - 68.330 (January 1997), 66.500 (1996), 64.692 (1995), 69.944 (1994), 67.603 (1993), 57.546 (1992)

Electricity
Capacity: 1.1 million kW (1994)
Production: 5 billion kWh (1995)
Consumption per capita: 17,181 kWh (1995 est.)

Telephones: 143,600 (1993 est.)

Telephone system: adequate domestic service
Domestic: the trunk network consists of coaxial and fiber-optic cables and microwave radio relay links
International: 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)

Military expenditures
Dollar figure: none

Airports: 84 (1996 est.)
With paved runways total: 60
With paved runways over 3047 m: 1
With paved runways 15-24 to 2437 m: 4
With paved runways 914 to 1523 m: 5
With paved runways under 914 m: 50 (1996 est.)
With unpaved runways total: 24
With unpaved runways 15-24 to 2437 m: 3
With unpaved runways 914 to 1523 m: 21 (1996 est.)

Railways: 0 km

Merchant marine
Total: 4 ships (1,000 GRT or over) totaling 17,041 GRT/21,531 DWT
Ships by type: chemical tanker 1, container 1, oil tanker 1, refrigerated cargo 1 (1996 est.)

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)