Iceland

Full name of country: Republic of Iceland

Region: Europe

Official language: Icelandic

Population: 364,036(2024 est.)

Nationality: Icelander(s) (noun), Icelandic (adjective)

Land area: 100,250 sq km (38,707 sq miles)

Water area: 2,750 sq km (1,062 sq miles)

Capital: Reykjavik

National anthem: "Lofsongur" (Song of Praise), by Matthias Jochumsson/Sveinbjorn Sveinbjornsson

National holiday: Independence Day, June 17 (1944)

Population growth: 0.85% (2024 est.)

Time zone: UTC +0

Flag: The flag of Iceland is blue. It features a red cross, laid horizontally toward the hoist side of the flag, outlined in white. The color blue represents the waters surrounding Iceland, while red represents volcanoes and white represents the country’s snow and ice.

Independence: December 1, 1918 (became a sovereign state under the Danish Crown); June 17, 1944 (from Denmark; birthday of Jon Sigurdssonleader of Iceland's nineteenth century independence movement)

Government type: parliamentary republic

Suffrage: 18 years of age; universal

Legal system: civil law system influenced by the Danish model

Iceland is a Nordic island in the Atlantic Ocean that borders the Arctic Circle. It is one of the most geologically active places in the world and is home to numerous volcanoes, geysers, and hot springs.

Iceland's government, a parliamentary republic, supports publicly funded free health care services that contribute to a remarkably high standard of living.

Iceland's economy is based mainly on the service industry, tourism, commercial fishing, and the export of aluminum and ferrosilicon. The economy of Iceland was seriously damaged by the global financial crisis of 2008–10 and had to arrange to receive emergency funding from the International Monetary Fund to avoid total bankruptcy. This worst case scenario was avoided, and the economy continued to recover, enjoying high growth and low unemployment. However, the COVID-19 pandemic that began in 2020 and its impact on tourism also negatively affected the country's economy.

Note: unless otherwise indicated, statistical data in this article is sourced from the CIA World Factbook, as cited in the bibliography.

People and Culture

Population: Administratively, Iceland consists of sixty-four municipalities. The vast majority (94 percent) of Icelanders live in urban areas as of 2023.

Reykjavík is Iceland's capital and largest city in terms of area (274.5 square kilometers/106 square miles) and population (approximately 216,000 in 2018). It is located on the southwestern coast inside the Flaxaflói Bay. The greater Reykjavík area consists of seven municipalities. This includes the major cities of Kópavogur and Hafnarfjörður.

Icelandic is the de facto language of Iceland; although it is not the official language, it is the primary language spoken. Many Icelanders speak English, Nordic languages, or German as well. Icelandic in its current form is very similar to its progenitor, Old Norse, spoken by Iceland's Norwegian settlers over a thousand years ago. To keep the language pure, foreign words are rarely incorporated into the Icelandic lexicon.

Iceland is a largely ethnically homogenous nation, due to its geographical isolation and strict immigration policies. Its population is comprised mainly of descendants of its original Norwegian and Celtic settlers who arrived in the ninth and tenth centuries. Immigration policies have relaxed into the twenty-first century, allowing an influx of different cultures, but ethnic diversity is still relatively negligible.

A mass conversion from paganism to Christianity occurred in Iceland around 1000 CE. In the twenty-first century, most Icelanders belong to the Evangelical Lutheran Church of Iceland (the state church). In 2024 an estimated 58.6 percent of the population was Lutheran, 3.8 percent was Roman Catholic, and 18.7 percent was unspecified. The remainder belonged to other denominations including Ásatrú, a modern pagan religion based on the ancient religions of the Germanic people. About 7.7 percent did not adhere to any religion. Religious freedom is constitutionally guaranteed.

Iceland ranked third (based on data for 2022) on the 2022 United Nations Human Development Index (HDI), an indicator of standard of living. Icelanders have an estimated life expectancy of about 84 years and one of the lowest infant mortality rates in the world, at 1.6 infants out of every 1,000 live births (2024 estimates).

Indigenous People: Iceland was uninhabited until the ninth century, when Vikings began settling the island. They were followed by other Scandinavian and Celtic settlers.

Education: Icelanders attend primary and lower secondary school from ages six to sixteen (attendance at these levels is mandatory). Students go on to upper-secondary school for four years, followed by university. Public universities do not charge tuition, although there are registration fees and costs for living expenses and school materials. There are seven higher education institutions in Iceland, of which the University of Iceland is the largest.

Icelanders place great importance on education, as evidenced by the country's average literacy rate, which is among the highest in the world. Preschools and nurseries for children from age one to six years are heavily subsidized by local councils.

Health Care: Icelanders benefit from very good health that is attributable not only to a high standard of living, but also to free and easily accessible quality health care.

A universal health care system that is publicly funded provides Icelanders with free, nearly comprehensive health care. This includes hospitals, rehabilitation institutions, nursing homes, care homes, health care centers, specialists, and preventative services. A drawback to Iceland's universal health care system is the financial burden it places on taxpayers.

Food: Traditional Icelandic cuisine incorporates the limited variety of food resources available to early Icelanders. Some traditional dishes are lundi, cooked puffin; svið, boiled sheep's head; slátur, sheep byproducts encased in sheep's stomach; skyr, a yogurt-type dairy product; and hákarl, fermented shark meat that has been buried underground for several months. Brennivín, an alcoholic drink made from potatoes and caraway seeds, is typically served with hákarl.

Modern cuisine still draws heavily from local resources. All types of seafood are popular, especially harðfiskur, or dried haddock. Lamb and beef are heavily consumed as well. Of the three meals that Icelanders eat each day, dinner is the most elaborate. Seafood, lamb, or beef is usually an ingredient in the main course.

Arts & Entertainment: Outdoor activities such as hiking, fishing, bird-watching, skiing (downhill and cross-country), camping, and bathing in hot springs are favorite pastimes in Iceland. Colder regions permit winter sports year-round.

An established arts scene in the larger cities provides Icelanders with many cultural activities to enjoy. Reykjavík has numerous museums, art galleries, theaters, and concert venues, earning it the title "European City of Culture" in 2000. The film industry in Iceland, although small compared to that of other Western European countries, has gained international notoriety.

The year is filled with festivals, from the biannual Arts Festival in Reykjavík to religious-themed festivals on Christmas and Easter. Some other interesting festivals are Þorrablót, or Midwinter Feast, in January or February; Beer Day, on March 1; and Sjómannadagurinn, or Sailor's Day, on the first Sunday in June.

Iceland's major contribution to literature are its sagas and poetry from the thirteenth century. Sagas are dramatic retellings of the lives of the original Norse settlers, the recitation of which have historically been a form of entertainment for the family. Internationally famous Icelandic musicians include Björk, Sigur Rós, and Of Monsters and Men.

Holidays: Public holidays unique to Iceland include Sumardagurinn Fyrsti, or the First Day of Summer, which falls on the third Thursday in April and symbolizes the end of Iceland's long winter. National Day, on June 17, honors Iceland's independence from Denmark on June 17, 1944. Commerce Day, on the first Monday in August, pays tribute to shop keepers and office workers by closing businesses for the day and giving them a three-day weekend.

The First Day of Summer and National Day are both celebrated with outdoor festivities such as picnics, parades, and street entertainment. People take advantage of Commerce Day by using the long weekend to travel.

Environment and Geography

Topography: Iceland is a geologically young volcanic island that is situated on the Mid-Atlantic Ridge, a fault line where the North Atlantic and European continental plates converge. The ridge runs from the southeast to the northwest through the middle of Iceland, dividing the country via a line of volcanoes and fissures and causing tremendous geological activity.

Iceland has about thirty active volcanic systems (mostly fissure volcanoes that have accounted for a majority of the Earth's lava output over the past 500 years), 780 hot springs, and 250 geothermal hotspots comprised of geysers and mud pits.

Only 1.2 percent of Iceland is arable, mostly along the coast, and 17.5 percent is used as pasture (2018 estimates). More than 50 percent of Iceland is desert plateau, approximately 12 percent is covered by icecaps, 11 percent is lava field, and 4 percent is sand delta. Fjords are found along the coast as well as in the northern and eastern areas of the country. Mountains and desert plateaus are present in the interior.

The highest point in Iceland is Hvannadalshnúkur, a mountain with an elevation of 2,110 meters (6,922 feet). The largest icecap is Vatnajökull with an area of 7,700 square kilometers (2,973 square miles). The longest river is Þjorsá, which is 230 kilometers (143 miles) long.

Natural Resources:Renewable energy sources such as geothermal power and hydroelectric power are Iceland's most abundant natural resources. Geothermal power is used to heat most homes in Reykjavík. It is also used to heat businesses, swimming pools, and greenhouses and is pumped underneath sidewalks to keep ice from accumulating.

Iceland contains many fast-flowing rivers that have been dammed to produce hydroelectric power. Hydroelectric power plants around the country harness this energy and distribute it as an alternative fuel source. The combined use of geothermal and hydroelectric power keeps Iceland nearly pollution-free.

Plants & Animals: Geographic isolation, deforestation, and the subarctic climate have restricted the variety of plants that grow in Iceland. Along the coast are low grasses and plants common to marshes and bogs. The interior is mostly grassland and tundra that contain shrubs, lichens, mosses, and dwarf willow trees. Birch and other large trees exist in limited amounts thanks to reforestation efforts.

The arctic fox is Iceland's only native land mammal. However, the original settlers introduced reindeer and mink, which have built up considerable populations and continue to thrive, along with the arctic fox, in unpopulated areas.

Domesticated animals include cows, sheep, and horses. The Icelandic horse is an interesting breed: it has five gaits instead of four, is as small as a pony, and is of pure genetic stock. Its bloodline has not been compromised by other breeds since the original settlers brought it to Iceland.

Over 350 species of birds, including auks, puffins, gannets, guillemots, kittiwakes, fulmars, shags, and razorbills, among others, may be spotted in Iceland. Most are migratory, but some breed among the steep cliffs on the coast. Waterfowl and marsh birds inhabit both coastal waters and inland lakes.

Whales, seals, dolphins, porpoises, and numerous species of fish flourish in the ocean surrounding Iceland, thanks to the temperature-moderating Gulf Stream.

Climate: Due to its close proximity to the Gulf Stream, Iceland has a relatively mild climate. In the greater Reykjavík area, winter temperatures average –1 degrees Celsius (30 degrees Fahrenheit), and summer temperatures average 11 degrees Celsius (52 degrees Fahrenheit).

The southern and western parts of the country are wetter than the eastern and northern parts, and experience less snow and temperature variation as well.

Because it is located at a high latitude, Iceland experiences extremely long summer days and winter nights. The aurora borealis can be seen between November and February.

Due to climate change, Iceland has experienced a greater glacier retreat as well as warmer air and ocean temperatures in the winter.

Economy

Industry: Fishing and agriculture were traditionally the cornerstones of the Icelandic economy. Since the early 1990s, however, Iceland has moved toward the technology, manufacturing, tourism, and service industries, particularly after joining the European Economic Area in 1994.

Sectors in the technology industry include biotechnology and information technology, while sectors in the service industry include health care, education, public administration, communication, finance, and real estate. Manufacturing produces equipment used in fishing and fish processing, aluminum goods, and mineral wool.

In 2023 Iceland earned an estimated $13.49 billion in exports. Marine products, including fresh, frozen, and processed fish, account for a significant percentage of all exports; aluminum, ferrosilicon, diatomite (skeletal algae), and iron alloys account for much of the rest. Iceland is considering exporting hydroelectric power in the future. Imports include oil, food, textiles, and machinery.

The GDP was an estimated US$26.155 billion in 2023, and the per capita GDP was US$66,500. The unemployment rate in Iceland was an estimated 3.56 percent in 2023.

Agriculture: Because such a small area of Iceland is suitable for farming, and an even smaller area is actually cultivated, agricultural products are sold primarily on the domestic market.

Sheep and cattle comprise the majority of Iceland's agricultural yield, and much of Iceland's cultivated land is used to grow hay and grasses for livestock feed instead of grain for human consumption.

Cash crops grown without the aid of greenhouses include potatoes, turnips, and carrots. Greenhouses allow Iceland to grow fruits and vegetables, such as tomatoes and cucumbers, that would not survive its climate otherwise.

Tourism: With the influx of tourists and the revenue and jobs they generate, tourism became a major sector in Iceland's economy, particularly after 2010. However, the COVID-19 pandemic negatively impacted the tourism industry in Iceland and many other parts of the world, as travel restrictions were put in place. In 2020, according to the World Travel and Tourism Council (WTTC), the total contribution of travel and tourism to GDP in Iceland was 8.8 percent, a significant decline from the previous year. By early 2022, officials had lifted all COVID-related restrictions, and tourists began traveling in larger numbers to the country. That year, the WTTC reported that the total contribution of travel and tourism to GDP in Iceland was 17.7 percent. Ecotourism, specifically whale watching, is one of Iceland's most popular tourist activities.

Natural landmarks are popular tourist attractions. Some frequently visited natural landmarks are Dettifoss, a large waterfall located in Jökulsárgljúfur National Park on the north coast; and Geysir, from the name of which the English word "geyser" is derived, near Reykjavík. Other attractions include lava fields, glaciers, lakes, and geothermal hotspots.

Government

Iceland is a parliamentary republic. Its government is run according to a set of principles outlined in its constitution, which requires that the president and the parliament be elected by the people. The constitution also guarantees equality under the law regardless of sex, race, and religion. Iceland became a republic on June 17, 1944, when it declared total independence from Denmark, under whose control it had languished in various degrees since the fourteenth century.

The central Icelandic government has an executive branch, a legislative branch, and a judicial branch. The executive branch consists of the president, who has limited executive power; the head of government, or prime minister, who, along with the cabinet has the most executive power; and the cabinet, a body whose members are appointed by the president upon recommendation of the prime minister. The president is directly elected by popular vote to serve a four-year term with no term limits; the prime minister is the leader of the majority party in parliament following legislative elections.

The legislative branch is comprised of the parliament, or Althingi, an assembly of sixty-three elected officials of various political affiliations. The Althingi has existed in some form since 930 CE. The judicial branch consists of a Supreme Court and eight district courts.

Universal suffrage permits all residents eighteen years old and over to vote for the president and the Althingi (whose members serve four-year terms). The Supreme Court judges are proposed by a selection committee of the Ministry of Interior and appointed by the president.

The constitution provides municipalities with the right to manage their own affairs, in the form of a local council. Local councils are supervised by the central government, and members are elected to four-year terms by residents of the municipalities they represent.

Interesting Facts

• By law, Icelanders use a patronymic or matronymic naming system, one that is based on the first names of their fathers or mothers with the added suffix "son" for boys and "dottír" for girls. For example, the last name of Erik Stefansson's sons must be "Eriksson," and the last name of his daughters must be "Eriksdottír."
• On March 20, 2010, an eruption underneath the Eyjafjallajökull glacier sent a gigantic plume of ash into the sky above Iceland. The massive cloud resulted in the cancellation of thousands of commercial and industrial flights worldwide. Millions of passengers from Africa, South America, and Europe struggled for a week with flight delays.
• Iceland does not have any mosquitoes. Its only native mammal is the arctic fox.
• To concretely bring greater awareness to the effects of climate change, in 2019 Iceland marked the loss of its first glacier to climate change by mounting a plaque in the area it used to cover.

Bibliography

"Economic Impact Reports." World Travel and Tourism Council, 2021, wttc.org/Research/Economic-Impact. Accessed 6 June 2022.

Human Development Report 2021/2022. United Nations Development Programme, 2022, hdr.undp.org/system/files/documents/global-report-document/hdr2021-22pdf‗1.pdf. Accessed 2,Jan. 2025.

"Iceland." The World Bank, 2024, data.worldbank.org/country/iceland. Accessed 2,Jan. 2025.

"Iceland." The World Factbook, Central Intelligence Agency, 20 Dec. 2024, www.cia.gov/the-world-factbook/countries/iceland/. Accessed 2,Jan. 2025.

"Iceland." World Health Organization, www.who.int/countries/isl/en/. Accessed 23 Oct. 2023.

Iceland: 2023 Annual Research: Key Highlights. World Travel and Tourism Council, 2023, assets-global.website-files.com/6329bc97af73223b575983ac/645a73e89d3a49bc62214bd1‗Iceland2023‗.pdf. Accessed 25 Oct. 2023.