Iceland

World Book Index

Introduction

Background
Settled by Norwegian and Celtic (Scottish and Irish) immigrants during the late 9th and 10th centuries A.D., Iceland boasts the world's oldest functioning legislative assembly, the Althingi, established in 930.

Geography

Area
total : 103,000 sq km
land: 100,250 sq km
water: 2,750 sq km

Climate
temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers

Natural resources
fish, hydropower, geothermal power, diatomite

People and Society

Population
total: 364,036 (2024 est.)

Ethnic groups
Icelandic 78.7%, Polish 5.8%, Danish 1%, Ukrainian 1%, other 13.5% (2024 est.)

Languages
Icelandic, English, Polish, Nordic languages, German

Religions
Evangelical Lutheran Church of Iceland (official) 58.6% Roman Catholic 3.8%, Independent Congregation of Reykjavik 2.6%, Independent Congregation of Hafnarfjordur 1.9%, pagan worship 1.5%, Icelandic Ethical Humanist Association 1.4%, other (includes Zuist and Pentecostal) or unspecified 18.7%, none 7.7% (2024 est.)

Population growth rate
0.85% (2024 est.)

Government

Government type
unitary parliamentary republic

Capital
name: Reykjavik

Executive branch
chief of state: President Halla TOMASDOTTIR (since 1 August 2024)
head of government: Prime Minister Kristrun FROSTADOTTIR (since 21 December 2024)

Diplomatic representation in the US
chief of mission: Ambassador Svanhildur Hólm VALSDÓTTIR (since 18 September 2024)

Diplomatic representation from the US
chief of mission: Ambassador (vacant); Chargé d’Affaires Erin SAWYER (since January 2025)

Economy

Economic overview
high-income North Atlantic island economy; not an EU member but market integration via European Economic Area (EEA); dominant tourism, fishing, and aluminum industries vulnerable to demand swings and disruption from volcanic activity; inflation remains above target rate; barriers to foreign business access and economic diversification

Real GDP (purchasing power parity)
$26.561 billion (2024 est.)
$26.424 billion (2023 est.)
$25.012 billion (2022 est.)

Real GDP per capita
$65,600 (2024 est.)
$67,200 (2023 est.)
$65,500 (2022 est.)

Exports
$13.916 billion (2024 est.)
$13.702 billion (2023 est.)
$13.114 billion (2022 est.)

Exports - partners
Netherlands 27%, Germany 11%, USA 10%, UK 8%, Norway 6% (2023)

Exports - commodities
aluminum, fish, orthopedic appliances, animal meal, iron alloys (2023)

Imports
$14.298 billion (2024 est.)
$13.63 billion (2023 est.)
$13.237 billion (2022 est.)

Imports - partners
Norway 11%, China 9%, Germany 9%, Netherlands 8%, USA 7% (2023)

Imports - commodities
refined petroleum, cars, carbon-based electronics, aluminum oxide, computers (2023)

Human Development Index

The country's Human Development Index (HDI) is 0.972, ranking it 1st out of 193 countries tested. (more information)

World Happiness Report

The World Happiness Report ranked the country 3rd out of 158 countries tested with a score of 7.658. (more information)