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Iceland ( ( ); : ?sland ) is a
in the , with a population of 348,580 and an area of 103,000 km2 (40,000 sq mi), making it the most sparsely populated country in . The capital and largest city is . Reykjavík and the surrounding areas in the southwest of the country are home to over two-thirds of the population.
Iceland is
and . The interior consists of a plateau characterised by sand and , , and , and many
flow to the sea through the lowlands. Iceland is warmed by the
and has a temperate climate, despite a high latitude just outside the . Its high latitude and marine influence keep summers chilly, with most of the archipelago having a .
According to the ancient manuscript , the
began in 874 AD when the
became the first permanent settler on the island. In the following centuries, , and to a lesser extent other , emigrated to Iceland, bringing with them
(i.e., slaves or serfs) of
origin. The island was governed as an
under the , one of the world's oldest functioning legislative assemblies. Following a , Iceland acceded to Norwegian rule in the 13th century. The establishment of the
in 1397 united the kingdoms of Norway, Denmark, and Sweden. Iceland thus followed Norway's integration to that union and came under Danish rule, after Sweden's secession from that union in 1523. Although the Danish kingdom introduced
forcefully in 1550, Iceland remained a distant semi-colonial territory in which Danish institutions and infrastructures were conspicuous by their absence. In the wake of the
and the , Iceland's struggle for independence took form and culminated in
and the founding of a . Until the 20th century, Iceland relied largely on subsistence fishing and agriculture, and was among the poorest countries in Europe. Industrialisation of the fisheries and
aid following
brought prosperity, and Iceland became one of the wealthiest and most developed nations in the world. In 1994, it became a part of the , which further diversified the economy into sectors such as finance, biotechnology, and manufacturing.
Iceland has a
with relatively low taxes, compared to other
countries. It maintains a
that provides
and tertiary education for its citizens. Iceland ranks high in economic, political, and social stability and equality. In 2016, it was ranked as the ninth most developed country in the world by the , and it ranks first on the . Iceland runs almost completely on . Affected by the ongoing , the nation's entire banking system
in October 2008, leading to a , substantial , the , and the institution of . Some bankers were jailed. Since then, the economy has made a significant recovery, in large part due to a surge in .
is founded upon the nation's Scandinavian heritage. Most Icelanders are descendants of
settlers. , a , is descended from
and is closely related to
and . The country's cultural heritage includes traditional , , and . Iceland has the smallest population of any
and is the only one with , with a lightly armed
in charge of defence.
Norsemen landing in Iceland – a 19th-century depiction by .
say that a Norwegian named
(or Naddador) was the first
to reach Iceland, and in the 9th century he named it Snaeland or "snow land" because it was snowing. Following Naddodd, the Swede
arrived, and so the island was then called Gar?arshólmur which means "Gar?ar’s Isle".
Then came a V his daughter drowned en route, then his livestock starved to death. The sagas say that the rather despondent Flóki climbed a mountain and saw a fjord () full of icebergs, which led him to give the island its new and present name. The notion that Iceland’s Viking settlers chose that name to discourage oversettlement of their verdant isle is merely a myth.
(modern Icelandic: Ingólfur Arnarson), the first permanent Scandinavian settler
According to both
and , monks known as the
lived in Iceland before Scandinavian settlers arrived, possibly members of a . Recent
excavations have revealed the ruins of a cabin in
indicates that it was abandoned sometime between 770 and 880. In 2016, archeologists uncovered a
that has been dated to as early as 800.
Swedish Viking explorer
was the first to circumnavigate Iceland in 870 and establish that it was an island. He stayed over winter and built a house in . Gar?ar departed the following summer but one of his men, , decided to stay behind with two slaves. Náttfari settled in what is now known as Náttfaravík and he and his slaves became the first permanent residents of Iceland.
The Norwegian-Norse chieftain
built his homestead in present-day Reykjavík in 874. Ingólfr was followed by many other emigrant settlers, largely Scandinavians and their , many of whom were Irish or Scottish. By 930, most
on the isl the , a legislative and judicial assembly, was initiated to regulate the Icelandic Commonwealth. Lack of arable land also served impetus to the
starting in 986. The period of these early settlements coincided with the , when temperatures were similar to those of the early 20th century. At this time, about 25% of Iceland was covered with forest, compared to 1% in the present day. Christianity was adopted
around 999–1000, although
persisted among some segments of the population for some years afterwards.
?sv?r, a replica of an old fishing outpost outside
lasted until the 13th century, when the political system devised by the original settlers proved unable to cope with the increasing power of Icelandic chieftains. The internal struggles and civil strife of the
led to the signing of the
in 1262, which ended the Commonwealth and brought Iceland under the Norwegian crown. Possession of Iceland passed from the
in 1415, when the kingdoms of Norway, Denmark and
were united. After the break-up of the union in 1523, it remained a Norwegian dependency, as a part of .
In the ensuing centuries, Iceland became one of the poorest countries in Europe. Infertile soil, volcanic eruptions, deforestation and an unforgiving climate made for harsh life in a society where subsistence depended almost entirely on agriculture. The
swept Iceland twice, first in
and again in . The former outbreak killed 50% to 60% of the population, and the latter 30% to 50%.
Around the middle of the 16th century, as part of the , King
began to impose
on all his subjects. , the last Catholic bishop of , was beheaded in 1550 along with two of his sons. The country subsequently became officially Lutheran and Lutheranism has since remained the dominant religion.
A map of Iceland published in the early 17th century
In the 17th and 18th centuries, Denmark imposed
on Iceland. Natural disasters, including volcanic eruption and disease, contributed to a decreasing population. Pirates from several countries, including the , raided Iceland's coastal settlements and abducted people into slavery. A great
epidemic in the 18th century killed around a third of the population. In 1783 the
volcano erupted, with devastating effects. In the years following the eruption, known as the
(Icelandic: Mó?uhar?indin), over half of all livestock died in the country. Around a quarter of the population died in the ensuing .
In 1814, following the , Denmark-Norway was broken up into two separate kingdoms via the
but Iceland remained a Danish dependency. Throughout the 19th century, the country's climate continued to grow colder, resulting in mass emigration to the , particularly to the region of ,
in Canada, which was sometimes referred to as . About 15,000 people emigrated, out of a total population of 70,000.
A national consciousness arose in the first half of the 19th century, inspired by
ideas from mainland Europe. An Icelandic independence movement took shape in the 1850s under the leadership of , based on the burgeoning Icelandic nationalism inspired by the
and other Danish-educated Icelandic intellectuals. In 1874, Denmark granted Iceland a constitution and limited home rule. This was expanded in 1904, and
served as the first
in the Danish cabinet.
led the British
The , an agreement with Denmark signed on 1 December 1918 and valid for 25 years, recognised Iceland as a fully sovereign and independent state in a
with Denmark. The Government of Iceland established an embassy in Copenhagen and requested that Denmark carry out on its behalf certain defence and foreign affairs matters, subject to consultation with the . Danish embassies around the world displayed two coats of arms and two flags: those of the Kingdom of Denmark and those of the . Iceland's legal position became comparable to those of countries belonging to the Commonwealth of Nations such as Canada whose sovereign is Queen Elizabeth II.
During World War II, Iceland joined Denmark in asserting neutrality. After the
on 9 April 1940, the Althing replaced the King with a regent and declared that the Icelandic government would take over full implementation of its defence and foreign affairs. A month later, British armed forces , violating Icelandic . In 1941, the Government of Iceland invited the United States to take over its defence so that Britain could use its troops elsewhere.
British and Icelandic vessels collide in the
during the
(Icelandic vessel
the British vessel is on the right)
On 31 December 1943, the
expired after 25 years. Beginning on 20 May 1944, Icelanders voted in a four-day plebiscite on whether to terminate the personal union with Denmark, abolish the monarchy, and establish a republic. The vote was 97% to end the union, and 95% in favour of the new republican constitution. Iceland formally became a republic on 17 June 1944, with
as its first president.
In 1946, the US Defence Force Allied left Iceland. The nation formally became a member of
on 30 March 1949, amid . On 5 May 1951, a defence agreement was signed with the United States. American troops returned to Iceland as the , and remained throughout the . The US withdrew the last of its forces on 30 September 2006.
Iceland prospered during the Second World War. The immediate post-war period was followed by substantial , driven by industrialisation of the fishing industry and the US
programme, through which Icelanders received the most aid per capita of any European country (at USD $209, with the war-ravaged
a distant second at USD $109).
The 1970s were marked by the —several disputes with the
over Iceland's extension of its fishing limits to 200 nmi (370 km) offshore. Iceland hosted a
between United States President
and Soviet Premier , during which they took significant steps toward . A few years later, Iceland became the first country to recognize the independence of , , and
from the USSR. Throughout the 1990s, the country expanded its international role and developed a foreign policy oriented toward humanitarian and peacekeeping causes. To that end, Iceland provided aid and expertise to various NATO-led interventions in , , and .
Iceland joined the
in 1994, after which the economy was greatly diversified and liberalised. International economic relations increased further after 2001, when Iceland's newly deregulated banks began to raise massive amounts of , contributing to a 32% increase in Iceland's
between 2002 and 2007.
In , following the privatisation of the banking sector under the government of , Iceland moved toward having an economy based on international investment banking and financial services. It was quickly becoming one of the most prosperous countries in the world but was hit hard by a . The crisis resulted in the greatest migration from Iceland since 1887, with a net emigration of 5,000 people in 2009. Iceland's economy stabilised under the government of , and grew by 1.6% in 2012. Many Icelanders, however, have remained unhappy with the state of the economy and government austerity policies. The centre-right
was returned to power in coalition with the
in the 2013 elections. In the following years, Iceland saw a surge in tourism as the country became a popular holiday destination. In 2016, Prime Minister Sigmundur David Gunnlaugsson resigned after being implicated in the
scandal. Early elections in 2016 resulted in a right-wing coalition government of the , the
This government fell when Bright Future quit the coalition due to a scandal involving then-Prime Minister 's father's letter of support for a convicted paedophile. Snap elections in October 2017 brought to power a new coalition consisting of the Independence Party, the Progressive Party and the , header by .
General topographic map
Iceland is at the juncture of the North Atlantic and Arctic Oceans. The main island is entirely south of the , which passes through the small Icelandic island of
off the main island's northern coast. The country lies between latitudes
and , and longitudes
Iceland is closer to
than to mainland North A thus, the island is generally included in Europe for historical, political, cultural, geographical, and practical reasons. Geologically, the island includes parts of both continental plates. The closest body of land is
(290 km, 180 mi). The closest bodies of land in Europe are the
(420 km, 260 mi);
Island (570 km, 350 mi);
and the , both about 740 km (460 mi); and the Scottish mainland and , both about 750 km (470 mi). The mainland of Norway is about 970 km (600 mi) away.
Three typical Icelandic landscapes
Iceland is the , and Europe's second-largest island after Great Britain. The main island is 101,826 km2 (39,315 sq mi), but the entire country is 103,000 km2 (40,000 sq mi) in size, of which 62.7% is . About 30 minor islands are in Iceland, including the lightly populated Grímsey and the
archipelago. Lakes and glaciers cover 14.3% only 23% is vegetated. The largest lakes are
reservoir: 83–88 km2 (32–34 sq mi) and : 82 km2 (32 sq mi); other important lakes include
is the deepest lake, at 248 m (814 ft).
Geologically, Iceland is part of the , a ridge along which the
spreads and forms new oceanic crust. This part of the mid-ocean ridge is located above a mantle plume, causing Iceland to be
(above the surface of the sea). The ridge marks the boundary between the
and , and Iceland was created by
through volcanism along the ridge.
punctuate Iceland's 4,970-km-long (3,088-mi) coastline, which is also where most settlements are situated. The island's interior, the , is a cold and uninhabitable combination of sand, mountains, and . The major towns are the capital city of Reykjavík, along with its outlying towns of , , and , nearby
where the international airport is located, and the town of
in northern Iceland. The island of Grímsey on the Arctic Circle contains the northernmost habitation of Iceland, whereas
contains the northernmost point of Iceland. Iceland has : , , and . The country is considered a "strong performer" in environmental protection, having been ranked 13th in 's Environmental Performance Index of 2012.
Iceland as seen from space on 29 January 2004
Landscape as seen from
hiking trail
The erupting
valley, the oldest known
in the world
, an iconic waterfall of Iceland
A geologically young land, Iceland is located on both the
and the , which runs right through it. This location means that the island is highly geologically active with many volcanoes, notably , , , and . The volcanic eruption of
caused a famine that killed nearly a quarter of the island's population. In addition, the eruption caused dust clouds and haze to appear over most of Europe and parts of Asia and Africa for several months afterward, and affected climates in other areas.
Iceland has many , including , from which the English word is derived, and the famous , which erupts every 8–10 minutes. After a phase of inactivity, Geysir started erupting again after a . Geysir has since grown quieter and does not erupt often.
With the widespread availability of , and the harnessing of many rivers and waterfalls for , most residents have access to inexpensive hot water, heating, and electricity. The island is composed primarily of , a low- lava associated with
as has occurred also in . Iceland, however, has a variety of volcanic types (composite and fissure), many producing more evolved lavas such as
and . Iceland has hundreds of volcanoes with about 30 active volcanic systems.
, one of the youngest islands in the world, is part of Iceland. Named after , it rose above the ocean in a series of volcanic eruptions between 8 November 1963 and 5 June 1968. Only scientists researching the growth of new life are allowed to visit the island.
On 21 March 2010, a
in the south of Iceland erupted for the first time since 1821, forcing 600 people to flee their homes. Additional eruptions on 14 April forced hundreds of people to abandon their homes. The resultant cloud of
across Europe.
High-field overview of area around Reykir
Another large eruption occurred on 21 May 2011. This time it was the
volcano, located under the thick ice of Europe's largest glacier, . Grímsv?tn is one of Iceland's most active volcanoes, and this eruption was much more powerful than the 2010 Eyjafjallaj?kull activity, with ash and lava hurled 20 km (12 mi) into the atmosphere, creating a large cloud.
The highest elevation for Iceland is listed as 2,110 m (6,923 ft) at
(64°00′N 16°39′W).
types of Iceland
glacier, one of the smaller
The climate of Iceland's coast is . The warm
ensures generally higher annual temperatures than in most places of similar latitude in the world. Regions in the world with similar climates include the , the , and , although these regions are closer to the equator. Despite its proximity to the Arctic, the island's coasts remain ice-free through the winter. Ice incursions are rare, the last having occurred on the north coast in 1969.
The climate varies between different parts of the island. Generally speaking, the south coast is warmer, wetter, and windier than the north. The Central Highlands are the coldest part of the country. Low-lying inland areas in the north are the most arid. Snowfall in winter is more common in the north than the south.
The highest air temperature recorded was 30.5 °C (86.9 °F) on 22 June 1939 at Teigarhorn on the southeastern coast. The lowest was -38 °C (-36.4 °F) on 22 January 1918 at Grímssta?ir and M??rudalur in the northeastern hinterland. The temperature records for Reykjavík are 26.2 °C (79.2 °F) on 30 July 2008, and -24.5 °C (-12.1 °F) on 21 January 1918.
Climate data for , Iceland ()
Average high °C (°F)
Average low °C (°F)
Source #1: Icelandic Meteorological Office
Source #2: All Icelandic weather station climatic monthly means
Climate data for , Iceland ()
Average high °C (°F)
Average low °C (°F)
Source #1: Icelandic Meteorological Office
Source #2: All Icelandic weather station climatic monthly means
is the only indigenous land mammal in Iceland and was the only land mammal prior to the arrival of humans
Around 1,300 species of insects are known in Iceland. This is low compared with other countries (over one million species have been described worldwide). Iceland is essentially free of mosquitoes. The only native land mammal when humans arrived was the , which came to the island at the end of the ice age, walking over the frozen sea. On rare occasions, bats have been carried to the island with the winds, but they are not able to breed there.
occasionally come over from , but they are just visitors, and no Icelandic populations exist. No native or free-living reptiles or amphibians are on the island.
, Iceland belongs to the Arctic province of the
within the . Around three-quarters of the island is
plant life consists mainly of grassland, which is regularly grazed by livestock. The most common tree native to Iceland is the northern birch (), which formerly formed forests over much of Iceland, along with aspens (), rowans (), common junipers (), and other smaller trees, mainly willows.
When the island was first settled, it was extensively forested. In the late 12th century,
described it in the
as "forested from mountain to sea shore". Permanent human settlement greatly disturbed the isolated ecosystem of thin, volcanic soils and limited . The forests were heavily exploited over the centuries for firewood and timber. , climatic deterioration during the , and overgrazing by sheep imported by settlers caused a loss of critical topsoil due to . Today, many farms have been abandoned. Three-quarters of Iceland's 100,000 square kilometres is affected by soil erosion, 18,000 km2 (6,900 sq mi) serious enough to make the land useless. Only a few small birch stands now exist in isolated reserves. The planting of new forests has increased the number of trees, but the result does not compare to the original forests. Some of the planted forests include . The tallest tree in Iceland is a
planted in 1949 it was measured at 25.2 m (83 ft) in 2013.
The animals of Iceland include the , , , , the sturdy , and the , all descendants of animals imported by Europeans. Wild mammals include the Arctic fox, , mice, rats, rabbits, and . Polar bears occasionally visit the island, travelling on icebergs from Greenland. In June 2008, two polar bears arrived in the same month.
include the
(Halichoerus grypus) and
(Phoca vitulina). Many species of fish live in the ocean waters surrounding Iceland, and the
is a major part of Iceland's economy, accounting for roughly half of the country's total exports. Birds, especially seabirds, are an important part of Iceland's animal life. , , and
nest on its sea cliffs.
is practised intermittently along with scientific whale hunts. Whale watching has become an important part of Iceland's economy since 1997.
The political system of Iceland
Iceland has a
. Following the , the biggest parties are the centre-right
(Sjálfstae?isflokkurinn), the
(Vinstrihreyfingin – graent frambo?) and the
(Framsóknarflokkurinn). These three parties form the current ruling coalition in the cabinet led by leftist . Other political parties with seats in the
(Parliament) are the
(Samfylkingin), the
(Mi?flokkurinn), Iceland's , the
(Flokkur fólksins), and the
(Vi?reisn).
Iceland was the first country in the world to have a political party formed and led entirely by women. Known as the Women's List or Women's Alliance (Kvennalistinn), it was founded in 1983 to advance the political, economic, and social needs of women. After participating in its first parliamentary elections, the Women's List helped increase the proportion of female parliamentarians by 15%. Although it disbanded in 1999, merging with the Social Democratic Alliance, it left a lasting influence on Iceland's politics: every major party has a 40% quota for women, and in 2009 nearly a third of members of parliament were female, compared to the global average of 16%. Following the 2016 elections, 48% of members of parliament are female.
In 2016 Iceland was ranked 2nd in the strength of its democratic institutions and 13th in government transparency. The country has a high level of civic participation, with 81.4% voter turnout during the most recent elections, compared to an OECD average of 72%. However, only 50% of Icelanders say they trust their political institutions, slightly less than the OECD average of 56% (and most probably a consequence of the political scandals in the wake of the ).
A 19th-century depiction of the
in session at
Iceland is a
and a . The modern parliament, Al?ingi (English: ), was founded in 1845 as an advisory body to the Danish monarch. It was widely seen as a re-establishment of the assembly founded in 930 in the
period and suspended in 1799. Consequently, "it is arguably the world's oldest ." It currently has 63 members, elected for a maximum period of four years. The president is elected by popular vote for a term of four years, with no term limit. The elections for president, the Althing, and local municipal councils are all held separately every four years.
is a largely ceremonial head of state and serves as a diplomat, but may veto laws voted by the parliament and put them to a national referendum. The current president is . The head of government is the prime minister who, together with the , is responsible for
government. The cabinet is appointed by the president after a general election to the A however, the appointment is usually negotiated by the leaders of the political parties, who decide among themselves after discussions which parties can form the cabinet and how to distribute its seats, under the condition that it has a majority support in the Althing. Only when the party leaders are unable to reach a conclusion by themselves within a reasonable time span does the president exercise this power and appoint the cabinet personally. This has not happened since the republic was founded in 1944, but in 1942 regent , who had been installed in that position by the Althing in 1941, appointed a non-parliamentary government. The regent had, for all practical purposes, the position of a president, and Sveinn would later become the country's first president in 1944.
The governments of Iceland have always been coalition governments, with two or more parties involved, as no single political party has ever received a majority of seats in the Althing throughout the republican period. The extent of the political power possessed by the office of the president is disputed by legal scholars[], in I several provisions of the constitution appear to give the president some important powers, but other provisions and traditions suggest differently.[] In 1980, Icelanders elected
as president, the world's first directly elected female head of state. She retired from office in 1996. In 2009, Iceland became the first country with an openly gay head of government when
became prime minister.
Iceland is divided into regions, constituencies and municipalities. The eight regions are primarily used for statistical purposes. District court jurisdictions also use an older version of this division. Until 2003, the constituencies for the parliamentary elections were the same as the regions, but by an amendment to the constitution, they were changed to the current six constituencies:
(city regions);
suburban areas around Reykjavík);
(northern half of Iceland, split); and,
(southern half of Iceland, excluding Reykjavík and suburbs).
The redistricting change was made to balance the weight of different districts of the country, since previously a vote cast in the sparsely populated areas around the country would count much more than a vote cast in the Reykjavík city area. The imbalance between districts has been reduced by the new system, but still exists.
74 municipalities in Iceland govern local matters like schools, transport, and zoning. These are the actual
of Iceland, as the constituencies have no relevance except in elections and for statistical purposes. Reykjavík is by far the most populous municipality, about four times more populous than , the second one.
Nordic prime ministers and the president of Finland visiting the White House in 2016, with Iceland's
second from the left.
Iceland, which is a member of the , , ,
and , maintains diplomatic and commercial relations with practically all nations, but its ties with the Nordic countries, Germany, the United States, Canada and the other NATO nations are particularly close. Historically, due to cultural, economic and linguistic similarities, Iceland is a , and it participates in intergovernmental cooperation through the .
Iceland is a member of the
(EEA), which allows the country access to the single market of the European Union (EU). It was not a member of the EU, but in July 2009 the Icelandic parliament, the Althing, voted in favour of application for EU membership and officially applied on 17 July 2009. However, in 2013, opinion polls showed that many Icelanders were now against joining the EU; following
the two parties that formed the island's new government—the centrist Progressive Party and the right-wing Independence Party—announced they would hold a referendum on EU membership.
Iceland has no , but the
which also maintains the , and an
to support peacekeeping missions, perform paramilitary functions.
from 1951 to 2006. The IDF, created at the request of , came into existence when the United States signed an agreement to provide for the defense of Iceland. The IDF also consisted of civilian Icelanders and military members of other NATO nations. The IDF was downsized after the end of the
maintained four to six
at the , until they were withdrawn on 30 September 2006. Since May 2008, NATO nations have periodically deployed fighters to patrol Icelandic airspace under the
mission. Iceland supported the
despite much domestic controversy, deploying a
team to Iraq, which was replaced later by members of the . Iceland has also participated in the ongoing
and the . Despite the ongoing financial crisis the first
in decades was launched on 29 April 2009.
Iceland was the neutral host of the historic 1986
in Reykjavík, which set the stage for the end of the . Iceland's principal historical international disputes involved disagreements over .[] Conflict with the United Kingdom led to a series of so-called , which included confrontations between the Icelandic Coast Guard and the
over British fishermen, in
due to the extension of Iceland's fishing zone from 3 to 4  (5.6 to 7.4  3.5 to 4.6 mi),
following a further extension to 12 nmi (22.2  13.8 mi),
with another extension to 50 nmi (92.6  57.5 mi); and in
another extension to 200 nmi (370.4  230.2 mi).[]
According to the , Iceland is the most peaceful country in the world, due to its lack of armed forces, low crime rate, and high level of socio-political stability. Iceland is listed in the
book as the "country ranked most at peace" and the "lowest military spending per capita".
is the largest town in Iceland outside the . Most rural towns are based on the fishing industry, which provides 40% of Iceland's exports
In 2007, Iceland was the
(US$54,858), and the fifth most productive by
($40,112). About 85 percent of total
supply in Iceland is derived from domestically produced renewable energy sources. Utilization of abundant
has made Iceland the world's largest electricity producer per capita. As a result of its commitment to renewable energy, the 2016 Global Green Economy Index ranked Iceland among the top 10 greenest economies in the world. Historically, Iceland's economy depended heavily on fishing, which still provides 40% of export earnings and employs 7% of the work force. The economy is vulnerable to declining fish stocks and drops in world prices for its main material exports: fish and fish products, aluminium, and .
has been historically significant. Iceland still relies heavily on fishing, but its importance is diminishing from an export share of 90% in the 1960s to 40% in 2006.
Until the 20th century, Iceland was among the poorest countries in Europe. Currently, it remains one of the most developed countries in the world. Strong economic growth had led Iceland to be ranked
report for , although in 2011 its HDI rating had fallen to 14th place as a result of the economic crisis. Nevertheless, according to the Economist Intelligence Index of 2011, Iceland has the 2nd highest quality of life in the world. Based on the , Iceland also has one of the lowest rates of income inequality in the world, and when , its HDI ranking climbs to 5th place. Iceland's unemployment rate has declined consistently since the crisis, with 4.8% of the labour force being unemployed as of June 2012, compared to 6% in 2011 and 8.1% in 2010.
Many political parties remain opposed to EU membership, primarily due to Icelanders' concern about losing control over their natural resources (particularly fisheries). The national currency of Iceland is the
(ISK). Iceland is the only country in the world to have a population under two million yet still have a floating exchange rate and an independent monetary policy.
A poll released on 5 March 2010 by Capacent Gallup showed that 31% of respondents were in favour of adopting the
and 69% opposed. Another Capacent Gallup poll conducted in February 2012 found that 67.4% of Icelanders would reject EU membership in a referendum.
Graphical depiction of Iceland's product exports in 28 colour-coded categories
Iceland's economy has been diversifying into manufacturing and service industries in the last decade, including software production, , industry accounts for around a quarter of economic activity, while services comprise close to 70%. The tourism sector is expanding, especially in
and whale-watching. On average, Iceland receives around 1.1 million visitors annually, which is more than three times the native population. 1.7 million people visited Iceland in 2016, 3 times more than the number that came in 2010. Iceland's agriculture industry, accounting for 5.4% of GDP, consists mainly of potatoes, green vegetables (in ),
and dairy products. The financial centre is
in Reykjavík, which hosts a large number of companies and three investment banks. Iceland's , the
(ISE), was established in 1985.
Iceland is ranked 27th in the 2012 , lower than in prior years but still among the freest in the world. As of 2016, it ranks 29th in the 's Global Competitive Index, one place lower than in 2015. According to 's , Iceland is the 11th most innovative country in the world. Unlike most Western European countries, Iceland has a
system: the main personal income tax rate is a flat 22.75%, and combined with municipal taxes, the total tax rate equals no more than 35.7%, not including the many deductions that are available. The
rate is a flat 18%, one of the lowest in the world. There is also a , whereas a net
was eliminated in 2006. Employment regulations are relatively flexible and the labour market is one of the freest in the world. Property rights are strong and Iceland is one of the few countries where they are applied to . Like other , taxpayers pay various subsidies to each other, but with spending being less than in most European countries.
Despite low tax rates, agricultural assistance is the highest among OECD countries and a potential impediment to structural change. Also, health care and education spending have relatively poor returns by OECD measures, though improvements have been made in both areas. The OECD Economic Survey of Iceland 2008 had highlighted Iceland's challenges in currency and macroeconomic policy. There was a
that started in the spring of 2008, and on 6 October trading in Iceland's banks was suspended as the government battled to save the economy. An assessment by the OECD 2011 determined that Iceland has made progress in many areas, particularly in creating a sustainable fiscal policy and restoring the health of
however, challenges remain in making the fishing industry more efficient and sustainable, as well as in improving monetary policy to address inflation. Iceland's public debt has decreased since the economic crisis, and as of 2015 is the 31th highest in the world by proportion of national GDP.
Iceland had been hit especially hard by the
that began in December 2007, because of the failure of its banking system and a subsequent economic crisis. Before the crash of the country's three largest banks, ,
and , their combined debt exceeded approximately six times the nation's gross domestic product of EUR14 billion ($19 billion). In October 2008, the Icelandic parliament passed emergency legislation to minimise the impact of the financial crisis. The Financial Supervisory Authority of Iceland used permission granted by the emergency legislation to take over the domestic operations of the three largest banks. Icelandic officials, including central bank governor , stated that the state did not intend to take over any of the banks' foreign debts or assets. Instead, new banks were established to take on the domestic operations of the banks, and the old banks will be run into bankruptcy.
On 28 October 2008, the Icelandic government raised interest rates to 18% (as of August 2010, it was 7%), a move forced in part by the terms of acquiring a loan from
(IMF). After the rate hike, trading on the Icelandic króna finally resumed on the open market, with valuation at around 250 ISK per Euro, less than one-third the value of the 1:70 exchange rate during most of 2008, and a significant drop from the 1:150 exchange ratio of the week before. On 20 November 2008, the
agreed to lend Iceland $2.5 billion.
On 26 January 2009, the coalition government collapsed due to the public dissent over the handling of the financial crisis. A new left-wing government was formed a week later and immediately set about removing Central Bank governor Daví? Oddsson and his aides from the bank through changes in law. Daví? was removed on 26 February 2009 in the wake of protests outside the Central Bank.
Thousands of Icelanders have moved from the country after the collapse, and many of those moved to . In
people moved from Iceland to N in 2009, the figure was 1,625. In April 2010, the Icelandic Parliament‘s Special Investigation Commission published the findings of its investigation, revealing the extent of control fraud in this crisis. By June 2012, Landsbanki managed to repay about half of the
According to , Iceland is on the trajectory of 2% unemployment as a result of crisis-management decisions made back in 2008, including allowing the banks to fail.
and some towns it passes through: 1. , 2. , 3. , 4. , 5. , 6. , 7.
Iceland has a high level of car
with a car for every 1.5 it is the main form of transport. Iceland has 13,034 km (8,099 mi) of administered roads, of which 4,617 km (2,869 mi) are paved and 8,338 km (5,181 mi) are not. A great number of roads remain unpaved, mostly little-used rural roads. The road speed limits are 30 km/h (19 mph) and 50 km/h (31 mph) in towns, 80 km/h (50 mph) on gravel country roads and 90 km/h (56 mph) on hard-surfaced roads.
, or the Ring Road (Icelandic: ?jó?vegur 1 or Hringvegur), was completed in 1974, and is a main road that runs around Iceland and connects all the inhabited parts of the island, with the interior of the island being uninhabited. This paved road is 1,332 km (828 mi) long with one lane in each direction, except near larger towns and cities and in the
(also the site of a toll) where it has more lanes. Many bridges on it, especially in the north and east, are single lane and made of timber and/or steel.
is the largest airport and the main aviation hub for international passenger transport. It serves several international and domestic airline companies. KEF is in the vicinity of the larger metropolitan capital areas, 49 km (30 mi)
to the WSW of Reykjavík center, reachable only by bus services and passenger cars. Iceland has no passenger railways.
is the second largest airport located just 1,5 km from the capital centre. RKV serves general aviation traffic and has daily- or regular domestic flights to 12 local townships within Iceland. RKV also serves international flights to
and the , business and private airplanes along with aviation training.
are two other domestic airports with limited international service capacity. There are a total of 103 registered airports and airfields in I most of them are unpaved and located in rural areas. The second longest runway is at Geitamelur, a four-runway glider field around 100 km (62 mi) east of Reykjavík.
Six main ferry services provide regular access to various outpost communities or shorten travel distances.[]
services the 's hot water and electricity needs. Virtually all of Iceland's electricity comes from renewable resources.
— and —provide effectively all of Iceland's electricity and around 85% of the nation's total primary energy consumption, with most of the remainder consisting of imported oil products used in transportation and in the fishing fleet. Iceland expects to be energy-independent by 2050. Iceland's largest geothermal power plants are
and , while
is the country's largest hydroelectric power station. When the Kárahnjúkavirkjun started operating, Iceland became the world's largest electricity producer per capita.
Icelanders emit 6.29 tonnes of CO2 in 2009 equivalent of greenhouse gases per capita. Iceland is one of the few countries that have filling stations dispensing hydrogen fuel for cars powered by . It is also one of a few countries currently capable of producing
in adequate quantities at a reasonable cost, because of Iceland's plentiful renewable sources of energy.
On 22 January 2009, Iceland announced its first round of
licences for companies wanting to conduct
and production in a region northeast of Iceland, known as the . Two exploration licenses have been awarded.
In 2010 Iceland was noted by Guinness World Records as "the Greenest Country", reaching highest score by the
which measures a country's water use, biodiversity and adoption of clean energies with a score of 93.5/100.
As of 2012, the government of Iceland is in talks with the government of the
about the possibility of constructing a
connector for transmission of electricity between the two countries. Such a cable would give Iceland access to a market where electricity prices have generally been much higher than those in Iceland. Iceland has considerable renewable energy resources, especially geothermal energy and hydropower resources, and most of the potential has not been developed, partly because there is not enough demand for additional electricity generation capacity from the residents and industry of Iceland, but the United Kingdom is interested in importing inexpensive electricity from renewable sources of energy, and this could lead to further development of the energy resources.
Reykjavík Junior College (), located in downtown Reykjavík, is the oldest
in Iceland
is responsible for the policies and methods that schools must use, and they issue the National Curriculum Guidelines. However, playschools, primary schools, and lower secondary schools are funded and administered by the municipalities. The government does allow citizens to
their children, however under a very strict set of demands. Students must adhere closely to the government mandated curriculum, and the parent teaching must acquire a government approved teaching certificate.
Nursery school, or leikskóli, is non-compulsory education for children younger than six years, and is the first step in the education system. The current legislation concerning playschools was passed in 1994. They are also responsible for ensuring that the curriculum is suitable so as to make the transition into compulsory education as easy as possible.
Compulsory education, or grunnskóli, comprises primary and lower secondary education, which often is conducted at the same institution. Education is mandatory by law for children aged from 6 to 16 years. The school year lasts nine months, beginning between 21 August and 1 September, ending between 31 May and 10 June. The minimum number of school days was once 170, but after a new teachers' wage contract, it increased to 180. Lessons take place five days a week. All public schools have mandatory education in Christianity, although an exemption may be considered by the .
Upper secondary education, or framhaldsskóli, follows lower secondary education. These schools are also known as
in English. Though not compulsory, everyone who has had a compulsory education has the right to upper secondary education. This stage of education is governed by the Upper Secondary School Act of 1996. All schools in Iceland are mixed sex schools. The largest seat of higher education is the , which has its main campus in central Reykjavík. Other schools offering university-level instruction include , ,
An OECD assessment found 64% of Icelanders aged 25–64 have earned the equivalent of a high-school degree, which is lower than the OECD average of 73%. Among 25- to 34-year-olds, only 69% have earned the equivalent of a high-school degree, significantly lower than the OECD average of 80%. Nevertheless, Iceland's education system is considered excellent: the
currently ranks it as the 16th best performing, above the OECD average. Students were particularly proficient in reading and mathematics.
According to a 2013
report by the , Iceland spends around 3.11% of its GDP on scientific research and development (R&D), over 1 percentage point higher than the EU average of 2.03%, and has set a target of 4% to reach by 2020. A 2010
report found that out of 72 countries that spend the most on R&D (100 million US dollars or more), Iceland ranked 9th by proportion of GDP, tied with Taiwan, Switzerland, and Germany and ahead of France, the UK, and Canada.
, Iceland's largest metropolitan area and the centre of the
which, with a population of 212,385, makes for 63% of Iceland's population. (numbers from 2016)
The original population of Iceland was of
origin. This is evident from literary evidence dating from the settlement period as well as from later scientific studies such as
and genetic analyses. One such genetic study indicated that the majority of the male settlers were of Nordic origin while the majority of the women were of Gaelic origin, meaning many settlers of Iceland were Norsemen who brought Gaelic slaves with them.
Iceland has extensive genealogical records dating back to the late 17th century and fragmentary records extending back to the . The biopharmaceutical company
has funded the creation of a
database that is intended to cover all of Iceland's known inhabitants. It views the database, called , as a valuable tool for conducting research on genetic diseases, given the relative isolation of Iceland's population.
The population of the island is believed to have varied from 40,000 to 60,000 in the period ranging from initial settlement until the mid-19th century. During that time, cold winters, ash fall from volcanic eruptions, and
adversely affected the population several times. There were 37
years in Iceland between 1500 and 1804. The first census was carried out in 1703 and revealed that the population was then 50,358. After the destructive volcanic eruptions of the
during , the population reached a low of about 40,000. Improving living conditions have triggered a rapid increase in population since the mid-19th century—from about 60,000 in 1850 to 320,000 in 2008. Iceland has a relatively young population for a developed country, with one out of five people being 14 years old or younger. With a fertility rate of 2.1, Iceland is one of only a few European countries with a birth rate
(see table on the below).
Population projection
(1 January)
In December
people (13.5% of the total population) living in Iceland had been born abroad, including children of Icelandic parents living abroad. Around 19,000 people (6% of the population) held foreign citizenship.
people make up the largest minority group by a considerable margin, and still form the bulk of the foreign workforce. About 8,000 Poles now live in Iceland, 1,500 of them in
where they make up 75% of the workforce who are constructing the Fjar?arál aluminium plant. The recent increase in
has been credited[] to a
due to the booming economy at the time, as well as to the lifting of restrictions on the movement of people from the countries that were a part of the .[] Large-scale construction projects in the east of Iceland (see ) have also brought in many people whose stay is expected to be temporary. Many Polish immigrants were also considering leaving in 2008 as a result of the .
The southwest corner of Iceland is the most densely populated region. It is also the location of the capital Reykjavík, the northernmost national capital in the world. The largest towns outside the Greater Reykjavík area are
and , although the latter is relatively close to the capital.
Some 500 Icelanders under the leadership of
in the late 10th century. The total population reached a high point of perhaps 5,000 and developed independent institutions before disappearing by 1500. People from Greenland attempted to set up a colony at
in North America, but abandoned it in the face of hostility from the indigenous residents.
Emigration of Icelanders to the United States and Canada began in the 1870s. As of 2006, Canada had over 88,000 people of
descent, while there are more than 40,000 Americans of
descent, according to the 2000 US census.
Iceland's 10 most populous urban areas:
Largest cities or towns in Iceland
Iceland's official written and spoken language is , a
descended from . In grammar and vocabulary, it has changed less from Old Norse than the other N Icelandic has preserved more verb and noun , and has to a considerable extent developed new vocabulary based on native roots rather than borrowings from other languages. The puristic tendency in the development of Icelandic vocabulary is to a large degree a result of conscious language planning, in addition to centuries of isolation. Icelandic is the only living language to retain the use of the
in . The closest living relative of the Icelandic language is .
was officially recognised as a minority language in 2011. In education, its use for Iceland's deaf community is
by the National Curriculum Guide.
are compulsory subjects in the school curriculum. English is widely understood and spoken, while basic to moderate knowledge of Danish is common mainly among the older generations.
is mostly spoken by the local Polish community (the largest minority of Iceland), and Danish is mostly spoken in a way largely comprehensible to Swedes and Norwegians—it is often referred to as skandinavíska (i. e. Scandinavian) in Iceland.
Rather than using family names, as is the usual custom in most Western nations, Icelanders carry
surnames, patronyms being far more commonly practiced. Patronymic last names are based on the first name of the father, while matronymic names are based on the first name of the mother. These follow the person's given name, e.g. Elísabet Jónsdóttir ("Elísabet, Jón's daughter" (Jón, being the father)) or ?lafur Katrínarson ("?lafur, Katrín's son" (Katrín being the mother)). Consequently, Icelanders refer to one another by their given name, and the Icelandic telephone directory is listed alphabetically by first name rather than by surname. All new names must be approved by the .
Iceland has a
system that is administered by its Ministry of Welfare (: Velfer?arrá?uneyti?) and paid for mostly by taxes (85%) and to a lesser extent by service fees (15%). Unlike most countries, there are no private hospitals, and private insurance is practically nonexistent.
A considerable portion of the government budget is assigned to health care, and Iceland ranks 11th in health care expenditures as a percentage of GDP and 14th in spending per capita. Overall, the country's health care system is one of the best performing in the world, ranked 15th by the . According to an OECD report, Iceland devotes far more resources to healthcare than most industrialised nations. As of 2009, Iceland had 3.7 doctors per 1,000 people (compared with an average of 3.1 in OECD countries) and 15.3 nurses per 1,000 people (compared with an OECD average of 8.4).
Icelanders are among the world's healthiest people, with 81% reporting they are in good health, according to an OECD survey. Although it is a growing problem,
is not as prevalent as in other . Iceland has many campaigns for health and wellbeing, including the famous television show , starring and created by former gymnastics champion .
is one of the lowest in the world, and the proportion of the population that smokes is lower than the OECD average. Almost all women choose to terminate pregnancies of children with
in Iceland. The average
is 81.8 (compared to an OECD average of 79.5), the 4th highest in the world.
Additionally, Iceland has a very low level of pollution, thanks to an overwhelming reliance on cleaner geothermal energy, a low population density, and a high level of environmental consciousness among . According to an OECD assessment, the amount of toxic materials in the atmosphere is far lower than in any other industrialised country measured.
Affiliation by religious movement (1 January 2018)
Other and not specified
Unaffiliated
A church in the northwest of Iceland
Icelanders have freedom of religion guaranteed under the , although the , a
body, is the :
The Evangelical Lutheran Church shall be the State Church in Iceland and, as such, it shall be supported and protected by the State.
— Article 62, Section IV of
The Registers Iceland keeps account of the religious affiliation of every Icelandic citizen. In 2017, Icelanders were divided into religious groups as follows:
11.56% members of
11.29% other religio
1.19% members of
groups (99% of them belonging to );
0.55% members of
Icelan as with other Nordic nations, religious attendance is relatively low. The above statistics represent administrative membership of religious organisations, which does not necessarily reflect the belief demographics of the population. According to a study published in 2001, 23% of the inhabitants were either
or . A Gallup poll conducted in 2012 found that 57% of Icelanders considered themselves "religious", 31% considered themselves "non-religious", while 10% defined themselves as "convinced atheists", placing Iceland among the ten countries with the highest proportions of atheists in the world. The proportion registered in the official Church of Iceland is declining rapidly, more than 1% per year (the Church of Iceland has declined from 80% in 2010 to less than 70% in 2017).[]
Icelandic culture has its roots in North Germanic traditions.
is popular, in particular the
that were written during the
and . Centuries of isolation have helped to insulate the country's Nordic culture fro a prominent example is the preservation of the , which remains the closest to Old Norse of all modern Nordic languages.
In contrast to other Nordic countries, Icelanders place relatively great importance on independence and self- in a public opinion analysis conducted by the , over 85% of Icelanders believe independence is "very important," compared to 47% of Norwegians, 49% of Danes, and an average of 53% for the EU25. Icelanders also have a very strong work ethic, working some of the longest hours of any industrialised nation.
According to a poll conducted by the OECD, 66% of Icelanders were satisfied with their lives, while 70% believed that their lives will be satisfying in the future. Similarly, 83% reported having more positive experiences in an average day than negative ones, compared to an OECD average of 72%, which makes Iceland one of the
in the OECD. A more recent 2012 survey found that around three quarters of respondents stated they were satisfied with their lives, compared to a global average of about 53%.
Iceland is liberal with regard to
rights issues. In 1996, the Icelandic parliament passed legislation to create
for same-sex couples, conferring nearly all the rights and benefits of marriage. In 2006, parliament voted unanimously to grant same-sex couples the same rights as heterosexual couples in adoption, parenting and assisted insemination treatment. On 11 June 2010, the , making it gender neutral and defining marriage as between two individuals, making Iceland one of the first countries in the world to legalise . The law took effect on 27 June 2010. The amendment to the law also means registered partnerships for same-sex couples are now no longer possible, and marriage is their only option—identical to the existing situation for opposite-sex couples.
Icelanders are known for their deep sense of community: An OECD survey found that 98% believe they know someone they could rely on in a time of need, higher than in any other industrialised country. Similarly, only 6% reported "rarely" or "never" socializing with others. This high level of social cohesion is attributed to the small size and homogeneity of the population, as well as to a long history of harsh survival in an isolated environment, which reinforced the importance of unity and cooperation.
is highly valued among the people of Iceland, with income inequality being among the lowest in the world. The constitution explicitly prohibits the enactment of noble privileges, titles, and ranks. Everyone is addressed by their first name. As in other Nordic countries, equality between th Iceland is consistently ranked among the top three countries in the world for women to live in.
In 2011, Reykjavik was designated a UNESCO City of Literature.
from . The sagas are a significant part of the Icelandic heritage
Iceland's best-known classical works of literature are the , prose epics set in Iceland's age of settlement. The most famous of these include , about an epic blood feud, and
and , describing the discovery and settlement of Greenland and Vinland (modern ). , , ,
are also notable and popular Icelanders' sagas.
A translation of the Bible was published in the 16th century. Important compositions since the 15th to the 19th century include sacred verse, most famously the
of , and , rhyming epic poems. Originating in the 14th century, rímur were popular into the 19th century, when the development of new literary forms was provoked by the influential,
writer . In recent times, Iceland has produced many great writers, the best-known of whom is arguably , who received the
in 1955 (the only Icelander to win a Nobel Prize thus far).
was an influential modernist poet during the early 20th century who remains popular.
Icelanders are avid consumers of literature, with the highest number of bookstores per capita in the world. For its size, Iceland imports and translates more international literature than any other nation. Iceland also has the highest per capita publication of books and magazines, and around 10% of the population will publish a book in their lifetimes.
Most books in Iceland are sold between late September to early November. This time period is known as Jolabokaflod, the Christmas Book Flood. The Flood begins with the Iceland Publisher's Association distributing Bokatidindi, a catalog of all new publications, free to each Icelandic home.
The distinctive rendition of the Icelandic landscape by its painters can be linked to nationalism and the movement for , which was very active in the mid-19th century.
Contemporary Icelandic painting is typically traced to the work of , who, following formal training in art in the 1890s in , returned to Iceland to paint and exhibit works from 1900 to his death in 1924, almost exclusively portraying the Icelandic landscape. Several other Icelandic men and women artists studied at
at that time, including , who together with ?órarinn created a distinctive portrayal of Icel
