PROFILE

OFFICIAL NAME:
Republic of Iceland

Geography
Area: 103,000 sq. km. (39,600 sq. mi.); about the size of Virginia or slightly larger than Ireland.
Cities: Capital--Reykjavik (pop. 114,800). Other towns--Kopavogur (26,468), Hafnarfjordur (22,451), Akureyri (16,736).
Terrain: Rugged.
Climate: Maritime temperate.
Highest elevation: Hvannadalshnjukur at Vatnajokull Glacier, at 2,111 meters (6,925 ft.).

People
Nationality: Noun--Icelander(s). Adjective--Icelandic.
Population (October 2006): 305,309.
Annual growth rate: 2.2%.
Ethnic group: Relatively homogenous mixture of descendants of Norwegians and Celts.
Religion: Evangelical Lutheran, 86%.
Language: Icelandic.
Education: Compulsory up to age 16. Attendance--99%. Literacy--99.9%.
Health: Infant mortality rate--2.2/1,000. Life expectancy--men 78.2 years, women 82.2 years.
Work force (2006, 177,900): Commerce--14.0%; manufacturing--11.2%; fishing/fish processing--8.2%; construction--6.7%; transportation and communications--6.8%; agriculture--4.4%; unemployment (2006): 2.6%.

Government
Type: Semi-presidential, parliamentary.
Independence: 1918 (became "sovereign state" under Danish Crown); 1944 (establishment of republic).
Constitution: 1874.
Branches: Executive--president (head of state), prime minister (head of government), cabinet (12 ministers). Legislative--63-member unicameral parliament (Althingi). Judicial--Supreme Court, district courts, special courts.
Subdivisions: 26 administrative districts and 104 municipalities.
Major political parties: Independence (IP), Progressive (PP), Social Democratic Alliance (SDA), Left-Green Party (LGP), Liberal Party (LP).
Suffrage: Universal 18 years and above.
National holiday: June 17, anniversary of the establishment of the republic.

Economy
GDP (2005): $15.8 billion.
GDP growth rate (2004): 6.2%; (2005): 5.5%.
Per capita GDP: $53,555 (2005).
Inflation rate (2006): 4.1%.
Budget (2006): $5.3 billion.
Annual budget surplus (2006): 2.0% of GDP.
Net public debt (2006): 7.1% of GDP.
Foreign aid as part of 2005 budget: 0.18% of GDP.
Natural resources: Marine products, hydroelectric and geothermal power.
Agriculture: Products--potatoes, tomatoes, cucumbers, turnips, livestock.
Industry: Types--aluminum smelting, fishing and fish processing technology, ferro-silicon alloy production, hydro and geothermal power, tourism, information technology.
Trade: Exports of goods (2004)--$2.82 billion: marine products 62%, industrial products 34%, agriculture 2%, and miscellaneous 2%. Partners--EU 72% (U.K. 18%, Germany 17%, Netherlands 11%, Spain 6%, Denmark 5%); U.S. 9% ($218 million); EFTA 6%; Japan 3%. Imports (2004)--$3.39 billion: industrial supplies 27%; capital goods, parts, accessories 23%; consumer goods 20%; transport equipment 14%; food and beverages 9%; fuels and lubricants 8%. Partners--EU 62% (Germany 13%, Denmark 9%, U.K. 8%, Sweden 7%, Netherlands 7%); U.S. 8% ($208 million); EFTA 9%; Japan 4%.

GEOGRAPHY
Iceland is a volcanic island in the North Atlantic Ocean east of Greenland and immediately south of the Arctic Circle. It lies about 4,200 kilometers (2,600 mi.) from New York and 830 kilometers (520 mi.) from Scotland.

About 79% of Iceland's land area, which is of recent volcanic origin, consists of glaciers, lakes, a mountainous lava desert (highest elevation 2,000 meters--6,590 ft.--above sea level), and other wasteland. About 28% of the land is used for grazing, and 1% is cultivated. The inhabited areas are on the coast, particularly in the southwest where about 60% of the population lives.

Because of the Gulf Stream's moderating influence, the climate is characterized by damp, cool summers and relatively mild but windy winters. In Reykjavik, the average temperature is 11°C (52°F) in July and -1°C (30°F) in January.

PEOPLE
Most Icelanders are descendants of Norwegian settlers and Celts from the British Isles, and the population is remarkably homogeneous. According to Icelandic Government statistics, 93% of the nation's inhabitants live in urban areas (localities with populations greater than 200) and about 60% live in the Reykjavik metropolitan area. Of the Nordic languages, the Icelandic language is closest to the Old Norse language and has remained relatively unchanged since the 12th century.