Iceland Facts

by countryaah · Published June 3, 2019 · Updated December 12, 2024

Iceland, state of the North Atlantic; 103,000 km² (100 260 km² land area), 356 991 residents (2019).Iceland, located just south of the Arctic Circle, encompasses the island of Iceland and several smaller islands. The main island is located approximately 300 km southeast of Greenland, approximately 1,000 km west of Norway and 800 km northwest of Scotland. Iceland’s internationally recognized territorial waters extend 200 nautical miles from the coast and occupy 758 000 km². The capital is Reykjavík (127,220 residents, 2018).

Country facts

Republic of Iceland / Republic of Iceland
Country abbreviation: IS
Area: 103 000 km²
Population (2019): 356 991 residents
Capital: Reykjavik
Main language: Icelandic
State: Republic
Head of State: Guðni Th. Jóhannesson (President)
Head of Government: Katrín Jakobsdóttir
Per capita GDP (2018): US $ 73,202
GNI per capita (2018): US $ 67,950
Currency unit: 1 Icelandic krona = 100 auras
Currency code: ISK
Country number (telephony): 354
Internet domain name: ice
Time difference compared to Sweden: −1
National Day: June 17 (Independence Day, 1944)

Nature

Land use: forest (0.3%), agricultural land (23%), other (77%)
Highest mountain: Hvannadalshnúkur (2,119 m asl)
Largest glacier: Vatnajökull (8,400 km² )

Population

Population density (2019): 3 residents per km²
Natural population growth (2019): 0.5%; birth rate 12 ‰, death rate 7 ‰
Age structure (2019): 0-14 years (19%), 15-64 (67%), 65- (14%)
Average life expectancy (2019): men 81 years, women 84 years
Infant mortality (2019): 3 per 1,000 live births
Population forecast 2050: 400,000 residents
HDI (2017): 0.935 (place 6 of 198)
Urbanization rate (2019): 94%
Most populous city (2018): Reykjavík (127,220 residents)

Business

Industry’s contribution to GDP (2017): agriculture (6%), industry (20%), service (74%)
Exports (2017): US $ 4 957 million
Main export products: fish and fish products, aluminum
Main exporting countries: Netherlands, Spain, United Kingdom
Imports (2017): US $ 6,525 million
Main import products: machinery, means of transport, oil products
Main importing countries: Germany, Norway, China
Railway network: nothing in operation

Geography

Location and Borders

Iceland is a Nordic island country located in the North Atlantic Ocean. It sits just below the Arctic Circle and is known for its stunning natural beauty, with glaciers, volcanoes, geothermal springs, and rugged coastlines. Iceland is the 18th largest island in Europe, covering an area of about 103,000 square kilometers. Unlike most countries, Iceland does not share any land borders, making it geographically isolated from the rest of Europe. The country is situated between Greenland and Norway, with the nearest continental landmasses being Greenland to the west and mainland Europe to the east.

Iceland’s strategic location at the intersection of the North Atlantic and Arctic Oceans has made it historically significant in maritime navigation and international affairs, particularly during the World Wars and the Cold War. Its isolation, however, has allowed the country to preserve a unique culture and ecosystem, with a relatively small and homogenous population that has maintained strong historical ties to its Norse roots.

Major Landforms

Iceland’s landscape is diverse and shaped by its geological activity, making it one of the most geologically active regions on Earth. The country sits atop the Mid-Atlantic Ridge, where the Eurasian and North American tectonic plates meet, leading to significant volcanic activity. Iceland is home to around 30 active volcanic systems, with eruptions occurring regularly throughout the country. The volcanic activity, in turn, has shaped Iceland’s landforms, including vast lava fields, craters, and volcanic mountains.

In addition to its volcanic terrain, Iceland is home to glaciers, particularly in the central and southern regions. Vatnajökull, the largest glacier in Europe by volume, covers about 8% of the country’s total land area and is a key feature of Iceland’s landscape. Iceland’s glaciers feed into a number of rivers, which contribute to the country’s hydrological cycle and support agriculture, though much of the country is not suitable for farming due to its challenging terrain and volcanic activity.

Iceland’s coast is characterized by steep cliffs, fjords, and black sand beaches, especially along the southern coastline. The country also boasts numerous geothermal hot springs, including the famous Blue Lagoon, located near Reykjavík, the capital. These natural features have contributed to Iceland’s development as a major tourist destination, drawing visitors to its pristine landscapes and outdoor experiences.

Rivers and Lakes

Iceland’s rivers are primarily fed by meltwater from glaciers, and they play an essential role in the country’s ecosystem and economy. Many of the rivers are short but powerful, flowing rapidly from glaciers through volcanic landscapes. The longest river in Iceland is the Þjórsá River, which flows from the highlands in the center of the country to the south coast. The river system is vital for hydropower generation, a key source of renewable energy for the country.

Iceland has numerous lakes, most of which are formed by volcanic activity or glacial retreat. Lake Þingvallavatn, located in Þingvellir National Park, is the largest lake in Iceland by surface area and is an important natural and historical site. The lake is situated in a rift valley created by the shifting tectonic plates and is part of a UNESCO World Heritage site. Iceland’s other notable lakes include Lake Mývatn, known for its rich birdlife and unique geological features, and the glacier-fed lakes found in the Vatnajökull region.

Climate

Subarctic and Oceanic Climate Zones

Iceland has a subarctic climate, with cool summers and cold winters, but the influence of the Gulf Stream helps moderate the temperatures, making the country warmer than its northern latitude would suggest. Reykjavík, the capital, has an average winter temperature around -1°C (30°F) and summer temperatures averaging 10°C to 15°C (50°F to 59°F), though temperatures can occasionally reach as high as 20°C (68°F) during the summer months.

Despite its location just south of the Arctic Circle, Iceland’s climate is relatively mild for its latitude, largely due to the warming effects of the Gulf Stream. This ocean current brings warmer air from the tropics, creating milder conditions for much of the year. However, Iceland’s weather can be unpredictable, with rapidly changing conditions, strong winds, and frequent rainfall. The country is also known for its long summer days and dark winter nights. During the summer months, Iceland experiences the Midnight Sun, where the sun does not fully set for several weeks, while in winter, it has long nights with only a few hours of daylight.

Seasonal Variation

Iceland’s seasonal variation is particularly striking, with long, dark winters and brief, bright summers. Winter typically lasts from November to February, bringing cold temperatures and snow, particularly in the northern and central regions. Although snowfall is common, it is often followed by periods of rain or thawing, which makes the conditions variable.

The summer season, from June to August, is marked by milder temperatures and an increase in daylight. This is the best time to explore Iceland’s natural beauty, as the weather is more conducive to outdoor activities. The country’s landscape is transformed during this time, with lush greenery and blooming flowers in the valleys and grasslands. Summer is also the season for many cultural festivals and outdoor events.

Spring and autumn serve as transitional seasons, with temperatures gradually warming in spring and cooling in autumn. These months are relatively short but can offer ideal conditions for travelers who want to experience Iceland’s beauty without the extremes of summer or winter.

People

Demographics

Iceland has a small population of about 350,000 people, making it one of the least populous countries in Europe. Despite its size, Iceland has a relatively high standard of living and ranks among the top countries in the world for quality of life. The majority of Iceland’s population resides in urban areas, particularly in and around Reykjavík, which is the capital and largest city. About two-thirds of Iceland’s population lives in the Reykjavík metropolitan area, while the rest of the country is sparsely populated, with only small towns and villages scattered along the coastline and in the rural interior.

Iceland has a homogeneous population, with Icelandic people being of primarily Scandinavian and Celtic descent. The country has a rich history of Norse and Gaelic settlement, and the Icelandic language has remained remarkably unchanged over the centuries, preserving its connection to the Old Norse language. Although Iceland is one of the least ethnically diverse countries in Europe, it has seen an increase in immigration in recent years, with people coming from other European countries, the United States, and the Philippines, among others.

Language and Religion

Icelandic is the official language of Iceland, and it is closely related to Old Norse, making it one of the most archaic languages still in use today. While Icelandic is the language of instruction in schools and is spoken by the vast majority of the population, English is widely spoken, especially in urban areas. Other languages such as Danish, German, and Polish are also spoken by immigrant communities.

Iceland is predominantly a Lutheran Christian country, with the Evangelical Lutheran Church of Iceland being the state church. Around 60% of the population belongs to the Lutheran Church, while a significant minority follows other Christian denominations, such as Roman Catholicism. There are also small communities of Muslims, Buddhists, and Jews, as well as people who identify as secular or non-religious. Icelandic society is largely secular, with religion playing a less prominent role in daily life compared to many other countries, though it still plays a significant role in cultural traditions and national holidays.

Economy

Economic Overview

Iceland’s economy is small but highly developed, characterized by a strong emphasis on renewable energy, tourism, fisheries, and technology. The country’s abundant natural resources, including geothermal energy, hydropower, and fisheries, have allowed it to maintain a high standard of living and an innovative, modern economy. Iceland’s economy is highly dependent on exports, especially seafood, aluminum, and renewable energy technology.

Tourism has become an increasingly important sector in Iceland’s economy. The country’s stunning natural landscapes, including glaciers, waterfalls, volcanoes, and hot springs, attract millions of visitors every year. The Blue Lagoon, the Golden Circle, and the northern lights are some of the most popular attractions for tourists. The rapid growth of tourism, particularly after the 2008 financial crisis, has brought both economic opportunities and challenges, including pressure on infrastructure and the environment.

The financial services sector in Iceland, once a major player in global finance, suffered a severe blow during the 2008 financial crisis, which led to the collapse of many of the country’s largest banks. However, Iceland has since recovered, focusing on rebuilding its economy and attracting foreign investment in sustainable industries. The country is also known for its strong banking and financial regulations, which have helped ensure stability in recent years.

Challenges and Opportunities

Despite its many advantages, Iceland faces several economic challenges. The country’s small population limits domestic consumption and the size of its labor force, and it remains highly reliant on imports for many goods, particularly in the retail sector. The fishing industry, which has historically been the backbone of the Icelandic economy, faces sustainability challenges, with overfishing and climate change threatening fish stocks.

The tourism industry, while a major driver of economic growth, also brings challenges related to environmental conservation and infrastructure. Iceland’s government has worked to balance economic development with environmental sustainability, particularly by using its abundant renewable energy resources to fuel industries like aluminum production and data centers. As the country continues to diversify its economy, there is increasing focus on innovation and technology, as well as efforts to create a more resilient economy.

Government

Political Structure

Iceland is a parliamentary democracy, with a political system based on the principles of the Republic. The country has a multi-party system, with the president serving as the ceremonial head of state, while the prime minister is the head of government. Iceland’s government is divided into three branches: the executive, legislative, and judiciary.

The president is elected every four years by the people and serves a largely symbolic role, with real power resting with the parliament and the prime minister. The prime minister is the leader of the party with the most seats in the Alþingi, Iceland’s unicameral parliament. The Alþingi is made up of 63 members, who are elected every four years through proportional representation.

Iceland’s judiciary is independent, with the Supreme Court being the highest court in the country. The legal system is based on civil law, and the country has a reputation for strong protection of human rights and democratic freedoms.

Political History

Iceland’s political history is shaped by its centuries of Norse settlement and colonial past. After being part of Denmark for several centuries, Iceland gained independence in 1944 and became a republic, with the establishment of a democratic government. The country’s political development has been characterized by stability, with frequent peaceful transitions of power and a strong commitment to democratic ideals.

Since independence, Iceland has focused on economic development, modernization, and diversification. The country’s small size and unique political structure have made it an attractive place for social policies focused on gender equality, environmental sustainability, and social welfare. Iceland is widely regarded as one of the most democratic and progressive nations in the world, with a strong tradition of human rights, civil liberties, and free expression.

Culture

Art and Music

Iceland has a rich cultural heritage that reflects its historical roots in Norse mythology, medieval sagas, and contemporary European influences. Icelandic literature, particularly the medieval sagas written in Old Norse, remains a central part of Icelandic identity. Writers like Halldór Laxness, who won the Nobel Prize in Literature in 1955, have made significant contributions to global literature, exploring themes of Icelandic identity, history, and societal transformation.

Icelandic art is diverse, with a strong focus on nature, landscape, and Iceland’s unique cultural heritage. The country is home to several museums and art galleries, particularly in Reykjavík, where contemporary Icelandic artists often engage with themes of isolation, environmentalism, and mythology.

Icelandic music is well-known internationally, particularly for its unique blend of folk, classical, and contemporary genres. Artists like Björk and Sigur Rós have brought Icelandic music to global prominence, while traditional Icelandic music, often characterized by choral singing and folk melodies, continues to thrive in rural communities.

Festivals and Cuisine

Iceland’s culture is heavily influenced by its long history and natural surroundings, with a variety of festivals and traditions. The Icelandic National Day, celebrated on June 17, marks the country’s independence from Denmark and is a day of national pride, with parades and festivities. Other festivals include Þorrablót, a midwinter feast celebrating traditional Icelandic foods, and the Reykjavik Arts Festival, which showcases contemporary art, music, and theater.

Icelandic cuisine is based on the country’s history of fishing, farming, and preservation. Traditional dishes include fish (particularly cod and haddock), lamb, and dairy products like skyr, a yogurt-like dairy product. One of the most famous traditional dishes is hákarl, fermented shark, which is an acquired taste. Icelandic cuisine also incorporates modern influences, particularly in the form of fresh produce, which is grown in geothermal greenhouses.

Literature and Cinema

Iceland’s literary tradition is one of its most important cultural exports, with Icelanders being some of the world’s most prolific readers and writers. The Icelandic sagas, written in Old Norse during the medieval period, are an essential part of Iceland’s cultural heritage. These epic tales of Viking history, exploration, and family conflict continue to resonate with Icelanders today.

Iceland’s film industry, though small, has garnered international attention with films like 101 Reykjavik and Rams, which highlight the country’s distinct cultural landscape and contemporary issues. Icelandic cinema often explores themes of isolation, nature, and identity, and has become a critical part of the country’s cultural dialogue.