Factbook dossier
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 Althingi, which was 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. Denmark granted limited home rule in 1874 and complete independence in 1944. The second half of the 20th century saw substantial economic growth driven primarily by the fishing industry. The economy diversified greatly after the country joined the European Economic Area in 1994, but the global financial crisis hit Iceland especially hard in the years after 2008. The economy is now on an upward trajectory, primarily thanks to a tourism and construction boom. Literacy, longevity, and social cohesion are first-rate by world standards.
Location
Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom
Area
total : 103,000 sq km land: 100,250 sq km water: 2,750 sq km
Natural resources
fish, hydropower, geothermal power, diatomite
Natural hazards
earthquakes and volcanic activity volcanism: Iceland is situated on top of a hotspot and experiences severe volcanic activity; Eyjafjallajokull (1,666 m) erupted in 2010, sending ash high into the atmosphere and seriously disrupting European air traffic; scientists continue to monitor nearby Katla (1,512 m), which has a high probability of eruption; Grimsvoetn and Hekla are Iceland's most active volcanoes; other historically active volcanoes include Askja, Bardarbunga, Brennisteinsfjoll, Esjufjoll, Hengill, Krafla, Krisuvik, Kverkfjoll, Oraefajokull, Reykjanes, Torfajokull, and Vestmannaeyjar
Population
total: 364,036 (2024 est.) male: 182,268 female: 181,768
Ethnic groups
Icelandic 78.7%, Polish 5.8%, Danish 1%, Ukrainian 1%, other 13.5% (2024 est.) note : data represent population by country of birth
Languages
Icelandic, English, Polish, Nordic languages, German
Religions
Evangelical Lutheran Church of Iceland (official) 58.6% Roman Catholic 3.8%, Independent Congregation of Reykjavik 2.6%, Independent Congregation of Hafnarfjordur 1.9%, pagan worship 1.5%, Icelandic Ethical Humanist Association 1.4%, other (includes Zuist and Pentecostal) or unspecified 18.7%, none 7.7% (2024 est.)
Environmental issues
water pollution from fertilizer runoff
Government type
unitary parliamentary republic
Capital
name: Reykjavik geographic coordinates: 64 09 N, 21 57 W time difference: UTC 0 (5 hours ahead of Washington, DC, during Standard Time) etymology: the name means "smoky bay" in Icelandic and refers to the steam from the hot springs in the area
Executive branch
chief of state: President Halla TOMASDOTTIR (since 1 August 2024) head of government: Prime Minister Kristrun FROSTADOTTIR (since 21 December 2024) cabinet: Cabinet appointed by the president upon the recommendation of the prime minister election/appointment process: president directly elected by simple-majority popular vote for a 4-year term (no term limits); following legislative elections, the leader of the majority party or majority coalition becomes prime minister most recent election date: 1 June 2024 election results: 2024: Halla TOMASDOTTIR elected president; percent of vote - Halla TOMASDOTTIR (independent) 34.1%, Katrin JAKOBSDOTTIR (Left-Green Movement) 25.2%, Halla Hrund LOGADOTTIR (independent) 15.7%, Jon GNARR (Social Democratic Alliance) 10.1%, Baldur PORHALLSSON (independent) 8.4%, other 6.5% 2020: Gudni Thorlacius JOHANNESSON reelected president; percent of vote - Gudni Thorlacius JOHANNESSON (independent) 92.2%, Gudmundur Franklin JONSSON (independent) 7.8% expected date of next election: June 2028
Legislative branch
legislature name: Parliament (Althingi) legislative structure: unicameral number of seats: 63 (all directly elected) electoral system: proportional representation scope of elections: full renewal term in office: 4 years most recent election date: 11/30/2024 parties elected and seats per party: Social Democratic Alliance (SDA) (15); Independence Party (IP) (14); Liberal Reform Party (11); People’s Party (10); Center Party (8); Progressive Party (PP) (5) percentage of women in chamber: 46% expected date of next election: November 2028
Real GDP (purchasing power parity)
$26.561 billion (2024 est.) $26.424 billion (2023 est.) $25.012 billion (2022 est.) note: data in 2021 dollars
Real GDP per capita
$65,600 (2024 est.) $67,200 (2023 est.) $65,500 (2022 est.) note: data in 2021 dollars
Inflation rate (consumer prices)
5.9% (2024 est.) 8.7% (2023 est.) 8.3% (2022 est.) note: annual % change based on consumer prices
Exports - partners
Netherlands 27%, Germany 11%, USA 10%, UK 8%, Norway 6% (2023) note: top five export partners based on percentage share of exports
Imports - partners
Norway 11%, China 9%, Germany 9%, Netherlands 8%, USA 7% (2023) note: top five import partners based on percentage share of imports
Military and security forces
no regular military forces; the Icelandic National Police, the regional police forces, and the Icelandic Coast Guard fall under the purview of the Ministry of Justice (2025) note: the Icelandic Coast Guard is responsible for operational defense tasks in Iceland including but not limited to operation of Keflavik Air Base, special security zones, and the Icelandic air defense system; it also coordinates with NATO in such areas as air surveillance and military defense exercises