Country Profile: Iceland
Iceland, an island nation located in the North Atlantic Ocean, boasts a unique blend of stunning geography and a resilient population. Known for its temperate climate and vibrant urban centers, particularly Reykjavik—the world's northernmost capital—this country has a robust economy driven by tourism, fishing, and aluminum production. Governed as a unitary parliamentary republic, Iceland has made significant strides in social cohesion and economic growth since gaining independence in 1944, although it faced challenges during the global financial crisis post-2008.
Geography
Iceland is situated between the Greenland Sea and the North Atlantic Ocean, with no land borders and a coastline extending 4,970 km. Its diverse landscape includes plateaus, mountain peaks, and deep fjords, with temperate conditions moderated by the North Atlantic Current. The terrain features significant volcanic activity, with several active volcanoes and a climate characterized by mild, windy winters and cool, damp summers.
- 100,250 sq km: Total land area
- 2,110 m: Highest point (Hvannadalshnukur at Vatnajokull Glacier)
- 4,970 km: Coastline length
- 200 nm: Exclusive economic zone claims
People and Society
Iceland's estimated population is around 364,036 (2024), predominantly Icelandic but with notable Polish and Danish communities. The country exhibits a high degree of urbanization, with 94% of residents living in urban areas, particularly in and around Reykjavik. Icelanders enjoy high literacy rates, long life expectancies, and are largely affiliated with the Evangelical Lutheran Church, reflecting a society with strong cultural and social bonds.
- 84 years: Life expectancy at birth (2024)
- 12.6 births/1,000 population: Birth rate (2024)
- 3.2%: Unemployment rate (2024)
- 0.85%: Population growth rate (2024)
Economy
Iceland has a high-income economy characterized by its reliance on tourism, fishing, and aluminum industries. The country is not a member of the EU but is integrated through the European Economic Area. While the economy has shown post-crisis recovery fueled by tourism, it remains vulnerable to external shocks and inflationary pressures.
- $26.561 billion: GDP (PPP) for 2024
- $65,600: GDP per capita (PPP, 2024)
- 3.2%: Unemployment rate (2024)
- 49.3%: Household consumption as part of GDP (2023)
Government
Iceland functions as a unitary parliamentary republic with a vibrant democratic process. The Althingi, established in 930, is the oldest functioning legislative assembly. The country has a President and a Prime Minister, with universal suffrage at 18 years. Recent elections in June 2024 saw Halla Tomasdottir elected as President.
- 64 municipalities: Administrative divisions
- 63 seats: Parliament (Althingi)
- 4 years: Term for Parliament members
- 100%: Electoral access for citizens above 18
Military and Security
Iceland does not maintain regular military forces, relying instead on the Icelandic Coast Guard for defense and security operations. Cooperation with NATO countries ensures security, particularly through air surveillance and military exercises. The country also participates in international peacekeeping operations.
- No standing military forces: Iceland relies on NATO commitments for defense
- Icelandic Coast Guard: Responsible for operational defense tasks
- 1949: Year Iceland became a founding member of NATO
Energy
Iceland is renowned for its extensive use of renewable energy sources, primarily geothermal and hydropower. The country's electricity access rate is 100%, with a high capacity for generating clean energy.
- 3.005 million kW: Installed generating capacity (2023)
- 70.1%: Hydroelectricity share of total installed capacity (2023)
- 19,000 bbl/day: Refined petroleum consumption (2024)
Environment
Iceland faces environmental challenges, particularly related to water pollution from agricultural runoff. However, it is a party to numerous international environmental agreements aimed at combating climate change and protecting biodiversity.
- 100%: Improved drinking water source access
- 55.5%: Percentage of municipal solid waste recycled (2022)
- 3.101 million metric tonnes: CO2 emissions (2023 est.)
Transportation
With a well-developed infrastructure, Iceland has a variety of transportation options, including 82 airports and numerous ports. The country's merchant fleet mainly consists of cargo vessels, while road networks facilitate internal connectivity.
- 82 airports: Total as of 2025
- 39: Merchant marine vessels (2023)
- 43 ports: Total ports (2024)
Communications
Iceland has a high penetration of telecom services, with nearly all residents having access to mobile and internet services. The country maintains a robust media landscape, with public and private broadcasting entities.
- 100%: Internet user rate (2023)
- 478,000: Mobile cellular subscriptions (2023)
- 145,000: Fixed broadband subscriptions (2023)
Key Metrics
| Metric | Value | Note |
|---|---|---|
| Population | 364,036 | 2024 estimate |
| Area | 103,000 sq km | Total land area |
| GDP (PPP) | $26.561 billion | 2024 estimate |
| Unemployment Rate | 3.2% | 2024 estimate |
| Birth Rate | 12.6 births/1,000 | 2024 estimate |
| Life Expectancy | 84 years | 2024 estimate |
| Electric Access | 100% | 2022 estimate |
| CO2 Emissions | 3.101 million metric tons | 2023 estimate |
| Total Urban Population | 94% | 2023 estimate |
| Installed Electricity Capacity | 3.005 million kW | 2023 estimate |
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