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: 4,970 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
Extremes 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

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: 299,388 (July 2006 est.)
Growth rate: 0.87% (2006 est.)
Below poverty line: NA%

Nationality
Noun: Icelander
Adjective: Icelandic

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

Languages: Icelandic English Nordic languages German widely spoken

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)

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/1000 population (2006 est.)

Death rate: 6.72 deaths/1000 population (2006 est.)

Net migration rate: 1.74 migrant(s)/1000 population (2006 est.)

Environment
Current issues: water pollution from fertilizer runoff; inadequate wastewater treatment
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
International agreements signed but not ratified: Environmental Modification, Marine Life Conservation

Sex ratio
At birth: 1.04 male/female
Under 15 years: 1.03 male/female
15-64 years: 1.03 male/female
65 years and over: 0.82 male/female
Total population: 1 male/female (2006 est.)

Infant mortality rate
Total: 3.29 deaths/1000 live births
Male: 3.43 deaths/1000 live births
Female: 3.14 deaths/1000 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.)

Hivaids
Adult prevalence rate: 0.2% (2001 est.)
People living with hivaids: 220 (2001 est.)
Deaths: less than 100 (2003 est.)

Literacy
Definition: age 15 and over can read and write
Total population: 99%
Male: 99%
Female: 99% (2003 est.)

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
Name: Reykjavik
Geographic coordinates: 64 09 N, 21 57 W
Time difference: UTC (5 hours ahead of Washington, DC during Standard Time)

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 Geir H. HAARDE (since 7 June 2006)
Cabinet: Cabinet appointed by the prime minister
Elections: president, largely a ceremonial post, is elected by popular vote for a four-year term (no term limits); 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
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 - will step down in August 2006]; Social Democratic Alliance (includes People's Alliance or PA Social Democratic Party or SDP Women's List) or SDA [Ingibjorg Solrun GISLADOTTIR]

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
In the us chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20,005-1704
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 Carol VAN VOORST
From the us embassy: Laufasvegur 21, 101 Reykjavik
From the us mailing address: US Department of State, 5,640 Reykjavik Place, Washington, D.C. 20,521-5,640
From the us telephone: [354] 562-9,100
From the us fax: [354] 562-9,118

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)

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.

Real gdp purchasing power parity: $10.59 billion (2005 est.)

Real gdp growth rate: 5.6% (2005 est.)

Real gdp per capita: $35,700 (2005 est.)

Gdp composition by sector of origin
Agriculture: 8.6%
Industry: 15%
Services: 76.5% (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.)

Labor force: 165,900 (2005 est.)
By occupation agriculture: 10.3%
By occupation industry: 18.3%
By occupation 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%

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

Public debt: 31.6% of GDP (2005 est.)

Fiscal year: calendar year

Inflation rate consumer prices: 4% (2005 est.)

Current account balance: $-2.607 billion (2005 est.)

Exports: $3.215 billion f.o.b. (2005 est.)
Commodities: fish and fish products 70% aluminum animal products ferrosilicon diatomite
Partners: UK 17.9% Germany 16.4% Netherlands 13% US 8.1% Spain 7.7% Denmark 4.3% (2005)

Imports: $4.582 billion (2005 est.)
Commodities: machinery and equipment petroleum products foodstuffs textiles
Partners: Germany 13.4% US 9.1% Sweden 8.6% Denmark 7.3% Norway 7.2% UK 5.9% China 5.3% Netherlands 5% Japan 4.7% (2005)

Reserves of foreign exchange and gold: $1.069 billion (2005 est.)

Debt external: $3.073 billion (2002)

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

Electricity
Production: 8.619 billion kWh (2004)
Consumption: 8.619 billion kWh (2004)
Exports: 0 kWh (2003)
Imports: 0 kWh (2003)

Natural gas
Production: 0 m³ (2003 est.)
Consumption: 0 m³ (2003 est.)

Telephones
Main lines in use: 193,900 (2005)
Mobile cellular: 304,000 (2005)

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)

Internet
Country code: .is
Hosts: 212,897 (2006)
Users: 258,000 (2005)

Military expenditures
Percent of gdp: 0%

Airports: 98 (2006)
With paved runways total: 5
With paved runways over 3047 m: 1
With paved runways 15-24 to 2437 m: 3
With paved runways 914 to 1523 m: 1 (2006)
With unpaved runways total: 93
With unpaved runways 15-24 to 2437 m: 3
With unpaved runways 914 to 1523 m: 29
With unpaved runways under 914 m: 61 (2006)

Roadways
Total: 13,028 km
Paved/oiled gravel: 4,241 km (does not include urban roads)
Unpaved: 8,787 km (2005)

Merchant marine
Total: 1 ship (1000 GRT or over) 3,354 GRT/480 DWT
By type: passenger/cargo 1
Registered in other countries: 34 (Antigua and Barbuda 8, Bahamas 1, Belize 2, Faroe Islands 4, Gibraltar 1, Malta 4, Norway 4, Saint Vincent and the Grenadines 10) (2006)

Ports and terminals: Grundartangi Hafnarfjordur Hornafjordhur Reykjavik Seydhisfjordhur

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