Iceland

Broadcast media

state-owned public TV broadcaster operates 1 TV channel nationally; several privately-owned TV stations broadcast nationally and roughly another half-dozen operate locally; about one-half the households utilize multi-channel cable or satellite TV services; state-owned public radio broadcaster operates 2 national networks and 4 regional stations; 2 privately-owned radio stations operate nationally and another 15 provide more limited coverage (2007)

Internet country code

.is

Internet hosts

369,969 (2012) country comparison to the world: 56

Internet users

301,600 (2009) country comparison to the world: 129

Telephone system

general assessment: telecommunications infrastructure is modern and fully digitized, with satellite-earth stations, fiber-optic cables, and an extensive broadband network domestic: liberalization of the telecommunications sector beginning in the late 1990s has led to increased competition especially in the mobile services segment of the market international: country code - 354; the CANTAT-3 and FARICE-1 submarine cable systems provide connectivity to Canada, the Faroe Islands, UK, Denmark, and Germany; a planned new section of the Hibernia-Atlantic submarine cable will provide additional connectivity to Canada, US, and Ireland; 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)

Telephones - main lines in use

191,100 (2011) country comparison to the world: 127

Telephones - mobile cellular

344,100 (2011) country comparison to the world: 172

Agriculture - products

potatoes, green vegetables; mutton, chicken, pork, beef, dairy products; fish

Budget

revenues: $5.463 billion expenditures: $5.775 billion (2012 est.)

Budget surplus (+) or deficit (-)

-2.3% of GDP (2012 est.) country comparison to the world: 79

Central bank discount rate

5.4% (31 January 2012 est.) country comparison to the world: 64 5.75% (31 December 2010 est.)

Commercial bank prime lending rate

8.4% (31 December 2012 est.) country comparison to the world: 121 7.7% (31 December 2011 est.)

Current account balance

-$700 million (2012 est.) country comparison to the world: 105 -$953 million (2011 est.)

Debt - external

$124.5 billion (30 June 2011) country comparison to the world: 41 $3.073 billion (2002 est.)

Distribution of family income - Gini index

28 (2006) country comparison to the world: 122 25 (2005)

Economy - overview

Iceland's Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system. Prior to the 2008 crisis, Iceland had achieved high growth, low unemployment, and a remarkably even distribution of income. The economy depends heavily on the fishing industry, which provides 40% of export earnings, more than 12% of GDP, and employs 7% of the work force. It 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. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, particularly within the fields of software production, biotechnology, and tourism. Abundant geothermal and hydropower sources have attracted substantial foreign investment in the aluminum sector, boosted economic growth, and sparked some interest from high-tech firms looking to establish data centers using cheap green energy, although the financial crisis has put several investment projects on hold. Much of Iceland's economic growth in recent years came as the result of a boom in domestic demand following the rapid expansion of the country's financial sector. Domestic banks expanded aggressively in foreign markets, and consumers and businesses borrowed heavily in foreign currencies, following the privatization of the banking sector in the early 2000s. Worsening global financial conditions throughout 2008 resulted in a sharp depreciation of the krona vis-a-vis other major currencies. The foreign exposure of Icelandic banks, whose loans and other assets totaled more than 10 times the country's GDP, became unsustainable. Iceland's three largest banks collapsed in late 2008. The country secured over $10 billion in loans from the IMF and other countries to stabilize its currency and financial sector, and to back government guarantees for foreign deposits in Icelandic banks. GDP fell 6.8% in 2009, and unemployment peaked at 9.4% in February 2009. GDP rose 2.7% in 2012 and unemployment declined to 5.6%. Since the collapse of Iceland's financial sector, government economic priorities have included: stabilizing the krona, implementing capital controls, reducing Iceland's high budget deficit, containing inflation, addressing high household debt, restructuring the financial sector, and diversifying the economy. Three new banks were established to take over the domestic assets of the collapsed banks. Two of them have foreign majority ownership, while the State holds a majority of the shares of the third. Iceland began making payments to the UK, the Netherlands, and other claimants in late 2011 following Iceland's Supreme Court ruling that upheld 2008 emergency legislation that gives priority to depositors for compensation from failed Icelandic banks. Iceland owes British and Dutch authorities approximately $5.5 billion for compensating British and Dutch citizens who lost deposits in Icesave when parent bank Landsbanki failed in 2008. Iceland began accession negotiations with the EU in July 2010; however, public support has dropped substantially because of concern about losing control over fishing resources and in reaction to worries over the ongoing Eurozone crisis.

Exchange rates

Icelandic kronur (ISK) per US dollar - 127.2 (2012 est.) 115.95 (2011 est.) 122.24 (2010 est.) 123.64 (2009) 85.619 (2008)

Exports

$5.1 billion (2012 est.) country comparison to the world: 112 $5.344 billion (2011 est.)

Exports - commodities

fish and fish products 40%, aluminum, animal products, ferrosilicon, diatomite

Exports - partners

Netherlands 32.4%, Germany 15%, UK 9%, Norway 4.4% (2011)

Fiscal year

calendar year

GDP (official exchange rate)

$13.55 billion (2012 est.)

GDP (purchasing power parity)

$12.95 billion (2012 est.) country comparison to the world: 147 $12.61 billion (2011 est.) $12.24 billion (2010 est.) note: data are in 2012 US dollars

GDP - composition by sector

agriculture: 5.3% industry: 24.4% services: 70.3% (2012 est.)

GDP - per capita (PPP)

$39,400 (2012 est.) country comparison to the world: 25 $38,700 (2011 est.) $37,900 (2010 est.) note: data are in 2012 US dollars

GDP - real growth rate

2.7% (2012 est.) country comparison to the world: 118 3.1% (2011 est.) -4% (2010 est.)

Household income or consumption by percentage share

lowest 10%: NA% highest 10%: NA%

Imports

$4.699 billion (2012 est.) country comparison to the world: 131 $4.506 billion (2011 est.)

Imports - commodities

machinery and equipment, petroleum products, foodstuffs, textiles

Imports - partners

Norway 15.9%, US 10.8%, Germany 7.8%, Netherlands 7.3%, China 6.2%, Denmark 6.2%, Brazil 5.8%, UK 5.1% (2011)

Industrial production growth rate

3% (2011 est.) country comparison to the world: 104

Inflation rate (consumer prices)

5.3% (2012 est.) country comparison to the world: 146 4% (2011 est.)

Investment (gross fixed)

14.5% of GDP (2012 est.) country comparison to the world: 139

Labor force

180,800 (2012 est.) country comparison to the world: 174

Labor force - by occupation

agriculture: 4.8% industry: 22.2% services: 73% (2008)

Market value of publicly traded shares

$2.021 billion (31 December 2011) country comparison to the world: 98 $1.996 billion (31 December 2010) $1.128 billion (31 December 2009)

Population below poverty line

NA% note: 332,100 families (2011 est.)

Public debt

118.9% of GDP (2012 est.) country comparison to the world: 10 128.6% of GDP (2011 est.)

Reserves of foreign exchange and gold

$9.095 billion (31 December 2012 est.) country comparison to the world: 75 $8.55 billion (31 December 2011 est.)

Stock of broad money

$12.57 billion (31 December 2010 est.) country comparison to the world: 98 $12.68 billion (31 December 2010 est.)

Stock of direct foreign investment - abroad

$NA (31 December 2011) $8.8 billion (31 December 2008)

Stock of direct foreign investment - at home

$NA (31 December 2011) $9.2 billion (31 December 2008)

Stock of domestic credit

$22.36 billion (31 December 2012 est.) country comparison to the world: 81 $19.49 billion (31 December 2011 est.)

Stock of narrow money

$4.466 billion (31 December 2012 est.) country comparison to the world: 104 $4.053 billion (31 December 2011 est.)

Taxes and other revenues

40.3% of GDP (2012 est.) country comparison to the world: 50

Unemployment rate

5.6% (2012 est.) country comparison to the world: 56 7.4% (2011 est.)

Carbon dioxide emissions from consumption of energy

3.357 million Mt (2010 est.) country comparison to the world: 138

Crude oil - exports

0 bbl/day (2009 est.) country comparison to the world: 129

Crude oil - imports

0 bbl/day (2009 est.) country comparison to the world: 200

Crude oil - production

0 bbl/day (2011 est.) country comparison to the world: 148

Crude oil - proved reserves

0 bbl (1 January 2012 est.) country comparison to the world: 147

Electricity - consumption

15.98 billion kWh (2009 est.) country comparison to the world: 74

Electricity - exports

0 kWh (2010 est.) country comparison to the world: 208

Electricity - from fossil fuels

4.7% of total installed capacity (2009 est.) country comparison to the world: 200

Electricity - from hydroelectric plants

72.9% of total installed capacity (2009 est.) country comparison to the world: 21

Electricity - from nuclear fuels

0% of total installed capacity (2009 est.) country comparison to the world: 108

Electricity - from other renewable sources

22.4% of total installed capacity (2009 est.) country comparison to the world: 6

Electricity - imports

0 kWh (2010 est.) country comparison to the world: 199

Electricity - installed generating capacity

2.571 million kW (2009 est.) country comparison to the world: 93

Electricity - production

16.77 billion kWh (2010 est.) country comparison to the world: 79

Natural gas - consumption

0 cu m (2010 est.) country comparison to the world: 157

Natural gas - exports

0 cu m (2010 est.) country comparison to the world: 87

Natural gas - imports

0 cu m (2010 est.) country comparison to the world: 209

Natural gas - production

0 cu m (2010 est.) country comparison to the world: 145

Natural gas - proved reserves

0 cu m (1 January 2012 est.) country comparison to the world: 151

Refined petroleum products - consumption

20,770 bbl/day (2011 est.) country comparison to the world: 128

Refined petroleum products - exports

1,209 bbl/day (2009 est.) country comparison to the world: 106

Refined petroleum products - imports

15,530 bbl/day (2009 est.) country comparison to the world: 118

Refined petroleum products - production

0 bbl/day (2009 est.) country comparison to the world: 160

Area

total: 103,000 sq km country comparison to the world: 108 land: 100,250 sq km water: 2,750 sq km

Area - comparative

slightly smaller than Kentucky

Climate

temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers

Coastline

4,970 km

Elevation extremes

lowest point: Atlantic Ocean 0 m highest point: Hvannadalshnukur 2,110 m (at Vatnajokull glacier)

Environment - current issues

water pollution from fertilizer runoff; inadequate wastewater treatment

Environment - 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, Whaling signed, but not ratified: Environmental Modification, Marine Life Conservation

Freshwater withdrawal (domestic/industrial/agricultural)

total: 0.17 cu km/yr (34%/66%/0%) per capita: 567 cu m/yr (2003)

Geographic coordinates

65 00 N, 18 00 W

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

Irrigated land

NA

Land boundaries

0 km

Land use

arable land: 0.07% permanent crops: 0% other: 99.93% (2005)

Location

Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom

Map references

Europe

Maritime claims

territorial sea: 12 nm exclusive economic zone: 200 nm continental shelf: 200 nm or to the edge of the continental margin

Natural hazards

earthquakes and volcanic activity volcanism: Iceland, situated on top of a hotspot, experiences severe volcanic activity; Eyjafjallajokull (elev. 1,666 m) erupted in 2010, sending ash high into the atmosphere and seriously disrupting European air traffic; scientists continue to monitor nearby Katla (elev. 1,512 m), which has a high probability of eruption in the very near future, potentially disrupting air traffic; 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

Natural resources

fish, hydropower, geothermal power, diatomite

Terrain

mostly plateau interspersed with mountain peaks, icefields; coast deeply indented by bays and fiords

Total renewable water resources

170 cu km (2005)

Administrative divisions

8 regions; Austurland, Hofudhborgarsvaedhi, Nordhurland Eystra, Nordhurland Vestra, Sudhurland, Sudhurnes, Vestfirdhir, Vesturland

Capital

name: Reykjavik geographic coordinates: 64 09 N, 21 57 W time difference: UTC 0 (5 hours ahead of Washington, DC during Standard Time)

Constitution

16 June 1944, effective 17 June 1944; amended many times

Country name

conventional long form: Republic of Iceland conventional short form: Iceland local long form: Lydveldid Island local short form: Island

Diplomatic representation from the US

chief of mission: Ambassador Luis E. ARREAGA embassy: Laufasvegur 21, 101 Reykjavik mailing address: US Department of State, 5640 Reykjavik Place, Washington, D.C. 20521-5640 telephone: [354] 562-9100 FAX: [354] 562-9118

Diplomatic representation in the US

chief of mission: Ambassador Gudmundur A. STEFANSSON chancery: House of Sweden, 2900 K Street NW #509, Washington, DC 20007 telephone: [1] (202) 265-6653 FAX: [1] (202) 265-6656 consulate(s) general: New York

Executive branch

chief of state: President Olafur Ragnar GRIMSSON (since 1 August 1996) head of government: Prime Minister Johanna SIGURDARDOTTIR (since 1 February 2009) cabinet: Cabinet appointed by the prime minister (For more information visit theWorld Leaders website) elections: president is elected by popular vote for a four-year term (no term limits); election last held on 30 June 2012 (next to be held in June 2016); note - 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 elected president; percent of vote - Olafur Ragnar GRIMSSON 52.8%, Thora ARNORSDOTTIR 33.2%, Ari Trausti GUDMUNDSSON 8.6%

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); the colors represent three of the elements that make up the island: red is for the island's volcanic fires, white recalls the snow and ice fields of the island, and blue is for the surrounding ocean

Government type

constitutional republic

Independence

1 December 1918 (became a sovereign state under the Danish Crown); 17 June 1944 (from Denmark; birthday of Jon SIGURDSSON leader of Iceland's 19th Century independence movement)

International law organization participation

has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction

International organization participation

Arctic Council, Australia Group, BIS, CBSS, CD, CE, EAPC, EBRD, EFTA, EU (candidate country), FAO, FATF, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NATO, NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UPU, WCO, WHO, WIPO, WMO, WTO

Judicial branch

Supreme Court or Haestirettur (justices are appointed for life by the president); eight district courts (justices are appointed for life by the president)

Legal system

civil law system influenced by the Danish model

Legislative branch

unicameral Althingi (parliament) (63 seats; members elected by popular vote to serve four-year terms) elections: last held on 25 April 2009 (next to be held in 2013) election results: percent of vote by party - Social Democratic Alliance 29.8%, Independence Party 23.7%, Left-Green Movement 21.7%, Progressive Party 14.8%, Citizens' Movement 7.2%, other 2.8%; seats by party - Social Democratic Alliance 20, Independence Party 16, Left-Green Movement 14, Progressive Party 9, Citizens' Movement 4 note: the Citizens' Movement disintegrated in September 2009; three of its former MPs are now represented under the banner of The Movement and the fourth former MP is an MP for the Left-Green Movement); three MPs from the Left-Green Movement left the party during early 2011 (two are now independents and the third has joined the Progressive Party); one MP left the Progressive Party in August 2011 and is now an independent

National anthem

name: "Lofsongur" (Song of Praise) lyrics/music: Matthias JOCHUMSSON/Sveinbjorn SVEINBJORNSSON note: adopted 1944; the anthem, also known as "O, Gud vors lands" (O, God of Our Land), was originally written and performed in 1874

National holiday

Independence Day, 17 June (1944)

National symbol(s)

gyrfalcon

Political parties and leaders

Independence Party (Sjalfstaedisflokkurinn) or IP [Bjarni BENEDIKTSSON]; Left-Green Movement (Vinstrihreyfingin-graent frambod) or LGM [Steingrimur SIGFUSSON]; Liberal Party (Frjalslyndi flokkurinn) [Sigurjon THORDARSON]; The Movement (Hreyfingin) [Birgitta JONSDOTTIR]; Progressive Party (Framsoknarflokkurinn) or PP [Sigmundur David GUNNLAUGSSON]; Social Democratic Alliance (Samfylkingin) or SDA [Johanna SIGURDARDOTTIR]

Suffrage

18 years of age; universal

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. 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 Iceland was especially hard hit by the global financial crisis in the years following 2008. Literacy, longevity, and social cohesion are first rate by world standards.

Manpower available for military service

males age 16-49: 75,337 (2010 est.)

Manpower fit for military service

males age 16-49: 62,781 females age 16-49: 61,511 (2010 est.)

Manpower reaching militarily significant age annually

male: 2,277 female: 2,200 (2010 est.)

Military - note

Iceland has no standing military force; under a 1951 bilateral agreement - still valid - its defense was provided by the US-manned Icelandic Defense Force (IDF) headquartered at Keflavik; however, all US military forces in Iceland were withdrawn as of October 2006; although wartime defense of Iceland remains a NATO commitment, in April 2007, Iceland and Norway signed a bilateral agreement providing for Norwegian aerial surveillance and defense of Icelandic airspace (2008)

Military branches

no regular military forces; Icelandic National Police (2008)

Military expenditures

0% of GDP (2005 est.) country comparison to the world: 172

Age structure

0-14 years: 20% (male 31,777/ female 30,940) 15-64 years: 67.1% (male 106,115/ female 103,909) 65 years and over: 12.9% (male 18,551/ female 21,891) (2012 est.)

Birth rate

13.23 births/1,000 population (2012 est.) country comparison to the world: 150

Death rate

7.02 deaths/1,000 population (July 2012 est.) country comparison to the world: 129

Education expenditures

7.4% of GDP (2007) country comparison to the world: 14

Ethnic groups

homogeneous mixture of descendants of Norse and Celts 94%, population of foreign origin 6%

HIV/AIDS - adult prevalence rate

0.3% (2009 est.) country comparison to the world: 85

HIV/AIDS - deaths

fewer than 100 (2009 est.) country comparison to the world: 136

HIV/AIDS - people living with HIV/AIDS

fewer than 1,000 (2009 est.) country comparison to the world: 143

Health expenditures

4.2% of GDP (2009) country comparison to the world: 156

Hospital bed density

5.79 beds/1,000 population (2007)

Infant mortality rate

total: 3.18 deaths/1,000 live births country comparison to the world: 216 male: 3.33 deaths/1,000 live births female: 3.03 deaths/1,000 live births (2012 est.)

Languages

Icelandic, English, Nordic languages, German widely spoken

Life expectancy at birth

total population: 81 years country comparison to the world: 19 male: 78.81 years female: 83.29 years (2012 est.)

Literacy

definition: age 15 and over can read and write total population: 99% male: 99% female: 99% (2003 est.)

Major cities - population

REYKJAVIK (capital) 198,000 (2009)

Maternal mortality rate

5 deaths/100,000 live births (2010) country comparison to the world: 176

Median age

total: 35.9 years male: 35.4 years female: 36.3 years (2012 est.)

Nationality

noun: Icelander(s) adjective: Icelandic

Net migration rate

0.53 migrant(s)/1,000 population (2012 est.) country comparison to the world: 62

Obesity - adult prevalence rate

12.4% (2002) country comparison to the world: 46

Physicians density

3.934 physicians/1,000 population (2008)

Population

313,183 (July 2012 est.) country comparison to the world: 179

Population growth rate

0.674% (2012 est.) country comparison to the world: 141

Religions

Lutheran Church of Iceland (official) 80.7%, Roman Catholic 2.5%, Reykjavik Free Church 2.4%, Hafnarfjorour Free Church 1.6%, other religions 3.6%, unaffiliated 3%, other or unspecified 6.2% (2006 est.)

Sanitation facility access

improved: urban: 100% of population rural: 100% of population total: 100% of population

School life expectancy (primary to tertiary education)

total: 18 years male: 17 years female: 20 years (2008)

Sex ratio

at birth: 1.04 male(s)/female under 15 years: 1.03 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.85 male(s)/female total population: 1 male(s)/female (2011 est.)

Total fertility rate

1.89 children born/woman (2012 est.) country comparison to the world: 144

Unemployment, youth ages 15-24

total: 16% country comparison to the world: 72 male: 19.9% female: 12% (2009)

Urbanization

urban population: 93% of total population (2010) rate of urbanization: 1.5% annual rate of change (2010-15 est.)

Disputes - international

Iceland, the UK, and Ireland dispute Denmark's claim that the Faroe Islands' continental shelf extends beyond 200 nm; the European Free Trade Association Surveillance Authority filed a suit against Iceland, claiming the country violated the European Economic Area agreement in failing to pay minimum compensation to Icesave depositors

Airports

99 (2012) country comparison to the world: 57

Airports - with paved runways

total: 6 over 3,047 m: 1 1,524 to 2,437 m: 3 914 to 1,523 m: 2 (2012)

Airports - with unpaved runways

total: 93 1,524 to 2,437 m: 3 914 to 1,523 m: 27 under 914 m: 63 (2012)

Merchant marine

total: 2 country comparison to the world: 141 by type: passenger/cargo 2 registered in other countries: 19 (Antigua and Barbuda 10, Belize 1, Faroe Islands 4, Finland 1, Gibraltar 1, Norway 2) (2010)

Ports and terminals

Grundartangi, Hafnarfjordur, Reykjavik

Roadways

total: 12,869 km country comparison to the world: 128 paved/oiled gravel: 4,438 km (does not include urban roads) unpaved: 8,431 km (2009)