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.

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; Reykjavik is the northernmost national capital in the world; more land covered by glaciers than in all of continental Europe

Population: 277,906 (July 2001 est.)
Growth rate: 0.54% (2001 est.)
Below poverty line: NA%

Nationality
Noun: Icelander
Adjective: Icelandic

Ethnic groups: homogeneous mixture of descendants of Norse and Celts

Languages: Icelandic

Religions: Evangelical Lutheran 93% other Protestant and Roman Catholic none (1997)

Age structure
0-14 years: 23.18% (male 33,238; female 31,191)
15-64 years: 65.01% (male 91,095; female 89,583)
65 years and over: 11.81% (male 14,681; female 18,118) (2001 est.)

Population growth rate: 0.54% (2001 est.)

Birth rate: 14.62 births/1000 population (2001 est.)

Death rate: 6.89 deaths/1000 population (2001 est.)

Net migration rate: -2.28 migrant(s)/1000 population (2001 est.)

Environment
Current issues: water pollution from fertilizer runoff; inadequate wastewater treatment
International agreements party to: Air Pollution, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Wetlands
International agreements signed but not ratified: Air Pollution-Persistent Organic Pollutants, Marine Life Conservation

Sex ratio
At birth: 1.08 male/female
Under 15 years: 1.07 male/female
15-64 years: 1.02 male/female
65 years and over: 0.81 male/female
Total population: 1 male/female (2001 est.)

Infant mortality rate: 3.56 deaths/1000 live births (2001 est.)

Life expectancy at birth
Total population: 79.52 years
Male: 77.31 years
Female: 81.92 years (2001 est.)

Total fertility rate: 2.01 children born/woman (2001 est.)

Hivaids
Adult prevalence rate: 0.14% (1999 est.)
People living with hivaids: 200 (1999 est.)
Deaths: less than 100 (1999 est.)

Literacy
Definition: age 15 and over can read and write
Total population: 99.9% (1997 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
Note: there may be four other counties

Independence: 17 June 1944 (from Denmark)

National holiday: Independence Day 17 June (1944)

Constitution: 16 June 1944 effective 17 June 1944

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 David ODDSSON (since 30 April 1991)
Cabinet: Cabinet appointed by the prime minister and approved by Parliament
Elections: president elected by popular vote for a four-year term; election last held 29 June 1996 (next to be held NA June 2004); President GRIMSSON ran unopposed in June 2000 so there were no elections; prime minister appointed by the president
Election results: Olafur Ragnar GRIMSSON elected president; President GRIMSSON ran unopposed

Legislative branch
Elections: last held on 8 May 1999 (next to be held by April 2003)
Election results: percent of vote by party - Independence Party 40.7%, The Alliance (PA, People's Party, Women's List) 26.8%, Progressive Party 18.4%, Left-Green Alliance 9.1%, Liberal Party 4.2%; seats by party - Independence Party 26, The Alliance 17, Progressive Party 12, Left-Green Alliance 6, Liberal Party 2

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

Political parties and leaders: Independence Party (conservative) or IP [David ODDSSON]; Left-Green Alliance [Steinsvimur SIGFUSSON]; Liberal Party [Sverrir HERMANNSSON]; People's Party (Social Democratic Party) or SDP [Sighvatyr BJORGIVINSSON]; Progressive Party (liberal) or PP [Halldor ASGRIMSSON]; The Alliance (includes People's Alliance or PA Social Democratic Party or SVP People's Movement Women's List) [Ossur SKARPHEDINSSON]; Women's List or WL [Kristin ASTGEIRSDOTTIR]

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

Diplomatic representation
In the us chief of mission: Ambassador Jon-Baldvin HANNIBALSSON
In the us chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20,005
In the us telephone: [1] (202) 265-6,653
In the us fax: [1] (202) 265-6,656
In the us consulates general: New York
From the us chief of mission: Ambassador Barbara J. GRIFFITHS
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. In the absence of other natural resources (except for abundant hydrothermal and geothermal power) the economy depends heavily on the fishing industry which provides 70% of export earnings and employs 12% of the work force. 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. 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 has been remarkably steady over the past five years at 4%-5%.

Real gdp growth rate: 4.3% (2000 est.)

Real gdp per capita: purchasing power parity - $24,800 (2000 est.)

Gdp composition by sector of origin
Agriculture: 15% (includes fishing 13%)
Industry: 21%
Services: 64% (1999 est.)

Agriculture products: potatoes turnips; cattle sheep; fish

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

Industrial production growth rate: 1.5% (2000 est.)

Labor force: 159,000 (2000)
By occupation: agriculture 5.1% fishing and fish processing 11.8% manufacturing 12.9% construction 10.7% other services 59.5% (1999)

Unemployment rate: 2.7% (January 2001)

Population below poverty line: NA%

Household income or consumption by percentage share
Lowest 10: NA%
Highest 10: NA%

Budget
Revenues: $3.5 billion
Expenditures: $3.3 billion, including capital expenditures of $467 million (1999)

Fiscal year: calendar year

Inflation rate consumer prices: 3.5% (2000 est.)

Exports: $2 billion (f.o.b. 2000)
Commodities: fish and fish products 70% animal products aluminum diatomite ferrosilicon
Partners: EU 64% (UK 20% Germany 13% France 5% Denmark 5%) US 15% Japan 5% (1999)

Imports: $2.2 billion (f.o.b. 2000)
Commodities: machinery and equipment petroleum products; foodstuffs textiles
Partners: EU 56% (Germany 12% UK 9% Denmark 8% Sweden 6%) US 11% Norway 10% (1999)

Debt external: $2.6 billion (1999)

Exchange rates: Icelandic kronur per US dollar - 84.810 (January 2001) 78.676 (2000) 72.335 (1999) 70.958 (1998) 70.904 (1997) 66.500 (1996)

Electricity
Production: 7.069 billion kWh (1999)
Production by source fossil fuel: 0.07%
Production by source hydro: 84.64%
Production by source nuclear: 0%
Production by source other: 15.29% (1999)
Consumption: 6.574 billion kWh (1999)
Exports: 0 kWh (1999)
Imports: 0 kWh (1999)

Telephones
Main lines in use: 168,000 (1997)
Mobile cellular: 65,746 (1997)

Telephone system
General assessment: 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)

Internet
Country code: .is
Service providers isps: 7 (2000)
Users: 144,000 (2000)

Military expenditures
Dollar figure: $0

Airports: 87 (2000 est.)
With paved runways total: 12
With paved runways over 3047 m: 1
With paved runways 15-24 to 2437 m: 4
With paved runways 914 to 1523 m: 7 (2000 est.)
With unpaved runways total: 75
With unpaved runways 15-24 to 2437 m: 3
With unpaved runways 914 to 1523 m: 20
With unpaved runways under 914 m: 52 (2000 est.)

Railways: 0 km

Waterways: none

Merchant marine
Total: 2 ships (1,000 GRT or over) totaling 3,435 GRT/4,538 DWT
Ships by type: chemical tanker 1, petroleum tanker 1 (2000 est.)