Iceland
Top Sights & Landmarks
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
Elevation
Detailed Geography Information
Coastline
4,970 km
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
0.5 sq km (2022)
Land boundaries
total: 0 km
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 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
Natural resources
Terrain
mostly plateau interspersed with mountain peaks, icefields; coast deeply indented by bays and fiords
Population & Growth
Age Distribution
Demographic Longevity
Vital Dynamics
Detailed People & Society Information
Alcohol consumption per capita
7.72 liters of pure alcohol (2019 est.)
Currently married women (ages 15-49)
48.5% (2023 est.)
Dependency ratios
total dependency ratio: 58.7 (2025 est.) youth dependency ratio: 31 (2025 est.) elderly dependency ratio: 27.8 (2025 est.) potential support ratio: 3.6 (2025 est.)
Education expenditure
7.3% of GDP (2022 est.) 15.7% national budget (2022 est.)
Ethnic groups
Gross reproduction rate
0.94 (2025 est.)
Health expenditure
8.6% of GDP (2022) 16.5% of national budget (2022 est.)
Hospital bed density
2.8 beds/1,000 population (2020 est.)
Infant mortality rate
total: 1.6 deaths/1,000 live births (2025 est.) male: 1.8 deaths/1,000 live births female: 1.4 deaths/1,000 live births
Languages
Major urban areas - population
216,000 REYKJAVIK (capital) (2018)
Maternal mortality ratio
3 deaths/100,000 live births (2023 est.)
Mother's mean age at first birth
28.7 years (2020 est.)
Nationality
noun: Icelander(s) adjective: Icelandic
Obesity - adult prevalence rate
21.9% (2016)
Physician density
4.37 physicians/1,000 population (2023)
Population distribution
Iceland is almost entirely urban, with half of the population located in and around the capital of Reykjavik; smaller clusters are primarily found along the coast in the north and west
Refugees and internally displaced persons
Religions
School life expectancy (primary to tertiary education)
total: 19 years (2022 est.) male: 18 years (2022 est.) female: 20 years (2022 est.)
Sex ratio
at birth: 1.05 male(s)/female 0-14 years: 1.04 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.9 male(s)/female total population: 1 male(s)/female (2024 est.)
Tobacco use
total: 8% (2025 est.) male: 7.9% (2025 est.) female: 8% (2025 est.)
Climate & Issues
temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers
Land Cover
Air & Carbon Emissions
Water Resources & Use
Detailed Environmental Information
Geoparks
total global geoparks and regional networks: 2 global geoparks and regional networks: Katla; Reykjanes (2023)
International environmental agreements
Urbanization
urban population: 94% of total population (2023) rate of urbanization: 0.74% annual rate of change (2020-25 est.)
Waste and recycling
municipal solid waste generated annually: 225,300 tons (2024 est.) percent of municipal solid waste recycled: 55.5% (2022 est.)
Capital & State Profile
Executive Branch
Legislative Branch
National Identity & Symbols
blue with a red cross outlined in white extending to the edges of the flag; the cross is shifted to the left in the style of the Dannebrog (Danish flag)
Detailed Government Information
Administrative divisions
64 municipalities (sveitarfelog, singular - sveitarfelagidh); Akranes, Akureyri, Arneshreppur, Asahreppur, Blaskogabyggdh, Bolungarvik, Borgarbyggdh, Dalabyggdh, Dalvikurbyggdh, Eyjafjardharsveit, Eyja-og Miklaholtshreppur, Fjallabyggdh, Fjardhabyggdh, Fljotsdalshreppur, Floahreppur, Gardhabaer, Grimsnes-og Grafningshreppur, Grindavikurbaer, Grundarfjardharbaer, Grytubakkahreppur, Hafnarfjordhur, Horgarsveit, Hrunamannahreppur, Hunathing Vestra, Hunabyggdh, Hvalfjardharsveit, Hveragerdhi, Isafjardharbaer, Kaldrananeshreppur, Kjosarhreppur, Kopavogur, Langanesbyggdh, Mosfellsbaer, Mulathing, Myrdalshreppur, Nordhurthing, Rangarthing Eystra, Rangarthing Ytra, Reykholahreppur, Reykjanesbaer, Reykjavik, Seltjarnarnes, Skaftarhreppur, Skagabyggdh, Skagafjordhur, Skeidha-og Gnupverjahreppur, Skorradalshreppur, Snaefellsbaer, Strandabyggdh, Stykkisholmur, Sudhavikurhreppur, Sudhurnesjabaer, Svalbardhsstrandarhreppur, Sveitarfelagidh Arborg, Sveitarfelagidh Hornafjordhur, Sveitarfelagidh Olfus, Sveitarfelagidh Skagastrond, Sveitarfelagidh Vogar, Talknafjardharhreppur, Thingeyjarsveit, Tjorneshreppur, Vestmannaeyjar, Vesturbyggdh, Vopnafjardharhreppur
Citizenship
citizenship by birth: no citizenship by descent only: at least one parent must be a citizen of Iceland dual citizenship recognized: yes residency requirement for naturalization: 3 to 7 years
Constitution
history: several previous; latest ratified 16 June 1944, effective 17 June 1944 (at independence) amendment process: proposed by the Althingi; passage requires approval by the Althingi and by the next elected Althingi, and confirmation by the president of the republic; proposed amendments to Article 62 of the constitution – that the Evangelical Lutheran Church shall be the state church of Iceland – also require passage by referendum
Country name
conventional long form: none conventional short form: Iceland local long form: none local short form: Island etymology: Floki VILGERDARSON, an early Norse explorer of the island in the 10th century, applied the name "Land of Ice," from the local words ís (ice) and land (land)
International law organization participation
has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction
International organization participation
Judicial branch
highest court(s): Supreme Court or Haestirettur (consists of 7 judges) judge selection and term of office: judges proposed by Ministry of Interior selection committee and appointed by the president for an indefinite period subordinate courts: Appellate Court or Landsrettur; 8 district courts; Labor Court
Legal system
civil law system influenced by the Danish model
National heritage
total World Heritage Sites: 3 (1 cultural, 2 natural) selected World Heritage Site locales: Thingvellir National Park (c); Surtsey (n); Vatnajökull National Park - Dynamic Nature of Fire and Ice (n)
Political parties
Center Party or M Independence Party or D Liberal Reform Party or C People's Party or F Progressive Party or B Social Democratic Alliance or S
Suffrage
18 years of age; universal
Economic Overview
high-income North Atlantic island economy; not an EU member but market integration via European Economic Area (EEA); dominant tourism, fishing, and aluminum industries vulnerable to demand swings and disruption from volcanic activity; inflation remains above target rate; barriers to foreign business access and economic diversification
Size & Performance
GDP Sector Breakdown
Trade Balance
Budget Balance
Export Profile
Top Export Partners
Major Export Commodities
Import Profile
Top Import Partners
Major Import Commodities
Labor & Employment
Income Inequality
Family Income / Consumption Share
Detailed Economic Data
Agricultural products
Current account balance
-$845.319 million (2024 est.) $290.603 million (2023 est.) -$698.165 million (2022 est.) note: balance of payments - net trade and primary/secondary income in current dollars
Exchange rates
Icelandic kronur (ISK) per US dollar - Exchange rates: 137.958 (2024 est.) 137.943 (2023 est.) 135.28 (2022 est.) 126.989 (2021 est.) 135.422 (2020 est.)
GDP - composition, by end use
Industrial production growth rate
-2.3% (2024 est.) note: annual % change in industrial value added based on constant local currency
Industries
Inflation rate (consumer prices)
5.9% (2024 est.) 8.7% (2023 est.) 8.3% (2022 est.) note: annual % change based on consumer prices
Public debt
80.7% of GDP (2023 est.) note: central government debt as a % of GDP
Remittances
0.7% of GDP (2024 est.) 0.7% of GDP (2023 est.) 0.7% of GDP (2022 est.) note: personal transfers and compensation between resident and non-resident individuals/households/entities
Reserves of foreign exchange and gold
$6.403 billion (2024 est.) $5.809 billion (2023 est.) $5.887 billion (2022 est.) note: holdings of gold (year-end prices)/foreign exchange/special drawing rights in current dollars
Taxes and other revenues
23.3% (of GDP) (2023 est.) note: central government tax revenue as a % of GDP
Grid Infrastructure
Generation Mix
Fossil Fuels Production
Digital Access
Active internet users as a percentage of the total population.
Fixed Broadband
Mobile Cellular
Broadcast Media
Aviation
Ports & Harbors
Merchant Marine
Service & Defense Details
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
Iceland was one of the original 12 countries to sign the North Atlantic Treaty (also known as the Washington Treaty) in 1949; Iceland is the only NATO member that has no standing military force; defense of Iceland is a NATO commitment, and NATO maintains an air policing presence in Icelandic airspace; Iceland participates in international peacekeeping missions with the civilian-manned Icelandic Crisis Response Unit (ICRU) Iceland also cooperates with the militaries of other regional countries through the Nordic Defense Cooperation (Denmark, Finland, Iceland, Norway, and Sweden) and the Joint Expeditionary Force (Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, the Netherlands, Norway, Sweden and the UK); in 1951, Iceland and the US concluded an agreement to make arrangements regarding the defense of Iceland and for the use of facilities in Iceland to that end (2025)