Country Profile: Iceland

Iceland is a North Atlantic island nation known for its dramatic landscapes, including volcanoes, geysers, hot springs, and lava fields. With a population of approximately 364,036 (2024 est.), it boasts the world's oldest functioning legislative assembly, the Althingi, established in 930 A.D. The economy has historically relied on fishing and tourism, with recent diversification efforts spurred by the 1994 entry into the European Economic Area. Governed as a unitary parliamentary republic, Iceland upholds strong social indicators such as high literacy rates and life expectancy.

Geography

Iceland is located in Northern Europe, positioned between the Greenland Sea and the North Atlantic Ocean, and is slightly smaller than Pennsylvania. The country features a temperate climate, influenced by the North Atlantic Current, resulting in mild winters and cool summers. Its terrain is primarily a plateau with mountain peaks and numerous glaciers. Iceland's coastline spans 4,970 km, with no land boundaries, making it the westernmost European nation.

103,000 sq km total area
2,110 m highest point: Hvannadalshnukur
80.9% of land used for other purposes (2022)
0 km land boundaries, completely surrounded by water
94% of the population lives in urban areas (2023)

People and Society

Iceland's population stands at about 364,036 (2024 est.) with a median age of 38 years. The society is predominantly ethnic Icelandic (78.7%), with a small percentage of immigrants from Poland, Denmark, and Ukraine. The official language is Icelandic, and the dominant religion is Evangelical Lutheran Christianity. The country has a high urbanization rate, with over 94% of the population living in urban areas.

84 years life expectancy at birth (2024 est.)
12.6 births/1,000 population birth rate (2024 est.)
3.2% unemployment rate (2024 est.)
1.6 deaths/1,000 live births infant mortality rate (2024 est.)
0.85% population growth rate (2024 est.)

Economy

Iceland's economy is classified as a high-income model and heavily relies on tourism, fishing, and aluminum production. Its GDP (purchasing power parity) is projected at $26.561 billion (2024 est.), reflecting a stable growth trajectory post-financial crisis. The country does not belong to the EU but has economic ties through the European Economic Area. Economic growth has faced challenges due to external demand fluctuations and inflationary pressures.

Real GDP per capita: $65,600 (2024 est.)
3.2% unemployment rate (2024 est.)
49.3% of household consumption (2023 est.)
65.5% services sector contribution to GDP (2024 est.)
$13.916 billion in exports (2024 est.)

Government

Iceland operates as a unitary parliamentary republic with a national assembly formed by the Althingi. The capital city is Reykjavik, which is also the northernmost national capital globally. Iceland's Constitution, effective since 1944, establishes civil law influenced by Danish legal traditions. The government structure includes an executive branch led by the president and prime minister, a unicameral legislature, and an independent judicial system.

63 seats in the Althingi (unicameral parliament)
18 years suffrage age
President: Halla TOMASDOTTIR (since August 2024)
Prime Minister: Kristrun FROSTADOTTIR (since December 2024)
Next parliamentary elections expected: November 2028

Military and Security

Iceland has no standing military forces and relies primarily on the Icelandic Coast Guard for operational defense. The country is a founding member of NATO and has cooperative defense arrangements with the US and other Nordic countries. Iceland's security strategy includes participation in international peacekeeping missions.

No regular military forces; security managed by police and Coast Guard
1 Coast Guard vessel equipped for defense tasks
68 stateless persons reported (2022)
NATO member with ongoing air surveillance missions

Energy

Iceland's energy sector is notable for its reliance on renewable sources, with 100% electrification achieved as of 2022. The majority of electricity is generated through hydroelectric and geothermal sources, contributing to its sustainability goals. Fossil fuel consumption is relatively low compared to many nations.

70.1% of electricity generated from hydroelectric power (2023 est.)
19,000 bbl/day petroleum consumption (2024 est.)
100% electrification rate (2022)
3.101 million metric tonnes CO2 emissions (2023 est.)

Transportation

Transportation in Iceland is characterized by its unique geographic landscape, with a significant number of air and sea transport facilities. The country has 82 airports, including international and domestic flights, along with several ports supporting maritime trade.

82 airports (2025)
39 vessels in the merchant marine (2023)
43 total ports (2024)
1 heliport (2025)

Communications

Iceland boasts a highly developed telecommunications infrastructure with high penetration rates for internet and mobile services. All households have access to multi-channel broadcasting services, and internet usage is universal.

100% internet penetration (2023 est.)
478,000 mobile subscriptions (2023 est.)
82,000 fixed-line subscriptions (2023 est.)
145,000 broadband subscriptions (2023 est.)

Key Metrics

Metric	Value	Note
Population	364,036 (2024 est.)
Area	103,000 sq km
GDP (PPP)	$26.561 billion (2024 est.)
Unemployment Rate	3.2% (2024 est.)
Birth Rate	12.6 births/1,000 population (2024 est.)
Life Expectancy	84 years (2024 est.)
Electricity Access	100% (2022 est.)
Total Area of Agricultural Land	18.6% (2022 est.)
CO2 Emissions	3.101 million metric tonnes (2023 est.)
Total Number of Airports	82 (2025)