Iceland

Airports

99 total, 92 usable; 4 with permanent-surface runways; none with runways over 3,659 m; 1 with runways 2,440-3,659 m; 14 with runways 1,220-2,439 m

Civil air

20 major transport aircraft

Highways

12,343 km total; 166 km bitumen and concrete; 1,284 km bituminous treated and gravel; 10,893 km earth

Merchant marine

16 ships (1,000 GRT or over) totaling 53,409 GRT/73,279 DWT; includes 8 cargo, 2 refrigerated cargo, 1 container, 2 roll-on/roll-off cargo, 1 petroleum, oils, and lubricants (POL) tanker, 1 chemical tanker, 1 bulk

Ports

Reykjavik, Akureyri, Hafnarfjordhur, Keflavik, Seydhisfjordhur, Siglufjordhur, Vestmannaeyjar; numerous minor ports

Telecommunications

adequate domestic service, wire and radio communication system; 135,000 telephones; stations--10 AM, 17 (43 relays) FM, 14 (132 relays) TV; 2 submarine cables; 1 Atlantic Ocean INTELSAT earth station

Branches

no armed forces; State Criminal Police, Coast Guard; Iceland's defense is provided by the US-manned Icelandic Defense Force (IDF) headquartered at Keflavik

Defense expenditures

none

Manpower availability

males 15-49, 69,644; 62,248 fit for military service; no conscription or compulsory military service

Agriculture

accounts for about 25% of GDP (including fishing); fishing is most important economic activity, contributing nearly 75% to export earnings; principal crops--potatoes and turnips; livestock--cattle, sheep; self-sufficient in crops; fish catch of about 1.4 million metric tons in 1989

Budget

revenues $1.58 billion; expenditures $1.66 billion, including capital expenditures of $NA million (1990)

Currency

krona (plural--kronur); 1 Icelandic krona (IKr) = 100 aurar

Economic aid

US commitments, including Ex-Im (FY70-81), $19.1 million

Electricity

1,063,000 kW capacity; 5,165 million kWh produced, 20,780 kWh per capita (1989)

Exchange rates

Icelandic kronur (IKr) per US$1--55.216 (January 1991), 58.284 (1990), 57.042 (1989), 43.014 (1988), 38.677 (1987), 41.104 (1986), 41.508 (1985)

Exports

$1.6 billion (f.o.b., 1990); commodities--fish and fish products, animal products, aluminum, diatomite; partners--EC 67.7% (UK 25.3%, FRG 12.7%), US 9.9%, Japan 6%

External debt

$3 billion (1990)

Fiscal year

calendar year

GDP

$4.2 billion, per capita $16,300; real growth rate 0% (1990)

Imports

$1.7 billion (c.i.f., 1990); commodities--machinery and transportation equipment, petroleum, foodstuffs, textiles; partners--EC 49.8% (FRG 12.4%, Denmark 8.6%, UK 8.1%), US 14.4%, Japan 5.6%

Industrial production

growth rate - 0.8% (1988 est.); accounts for 22% of GDP

Industries

fish processing, aluminum smelting, ferro-silicon production, hydropower

Inflation rate (consumer prices)

7.8% (1990)

Overview

Iceland's prosperous Scandinavian-type economy is basically capitalistic, but with extensive welfare measures, low unemployment, and comparatively even distribution of income. The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings. In the absence of other natural resources, Iceland's economy is vulnerable to changing world fish prices. As a result of climbing fish prices in 1990 and a noninflationary labor agreement, Iceland is pulling out of a recession, which began in mid-1988 with a sharp decline in fish prices and an imposition of quotas on fish catches to conserve stocks. Inflation was down sharply from 20% in 1989 to 8% in 1990.

Unemployment rate

1.8% (1990)

Climate

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

Coastline

4,988 km Continental shelf: edge of continental margin or 200 nm; Exclusive economic zone: 200 nm; Territorial sea: 12 nm

Comparative area

slightly smaller than Kentucky

Disputes

Rockall continental shelf dispute involving Denmark, Ireland, and the UK (Ireland and the UK have signed a boundary agreement in the Rockall area)

Environment

subject to earthquakes and volcanic activity

Land boundaries

none

Land use

arable land NEGL%; permanent crops 0%; meadows and pastures 23%; forest and woodland 1%; other 76%

Natural resources

fish, hydroelectric and geothermal power, diatomite

Note

strategic location between Greenland and Europe; westernmost European country

Terrain

mostly plateau interspersed with mountain peaks, icefields; coast deeply indented by bays and fiords

Total area

103,000 km2; land area: 100,250 km2

Administrative divisions

23 counties (syslar, singular--sysla) and 14 independent towns* (kaupstadhir, singular--kaupstadhur); Akranes*, Akureyri*, Arnessysla, Austur-Bardhastrandarsysla, Austur-Hunavatnssysla, Austur-Skaftafellssysla, Borgarfjardharsysla, Dalasysla, Eyjafjardharsysla, Gullbringusysla, Hafnarfjordhur*, Husavik*, Isafjordhur*, Keflavik*, Kjosarsysla, Kopavogur*, Myrasysla, Neskaupstadhur*, Nordhur-Isafjardharsysla, Nordhur-Mulasysla, Nordhur-Thingeyjarsysla, Olafsfjordhur*, Rangarvallasysla, Reykjavik*, Saudharkrokur*, Seydhisfjordhur*, Siglufjordhur*, Skagafjardharsysla, Snaefellsnes-og Hnappadalssysla, Strandasysla, Sudhur-Mulasysla, Sudhur-Thingeyjarsysla, Vestmannaeyjar*, Vestur-Bardhastrandarsysla, Vestur-Hunavatnssysla, Vestur-Isafjardharsysla, Vestur-Skaftafellssysla

Capital

Reykjavik

Communists

less than 100 (est.), some of whom participate in the People's Alliance

Constitution

16 June 1944, effective 17 June 1944

Diplomatic representation

Ambassador Tomas A. TOMASSON; Chancery at 2022 Connecticut Avenue NW, Washington DC 20008; telephone (202) 265-6653 through 6655; there is an Icelandic Consulate General in New York; US--Ambassador Charles E. COBB, Jr.; Embassy at Laufasvegur 21, Box 40, Reykjavik (mailing address is FPO New York 09571-0001); telephone [354] (1) 29100

Executive branch

president, prime minister, Cabinet

Flag

blue with a red cross outlined in white that extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)

Independence

17 June 1944 (from Denmark)

Judicial branch

Supreme Court (Haestirettur) Chief of State--President Vigdis FINNBOGADOTTIR (since 1 August 1980); Head of Government--Prime Minister David ODDSSON (since 30 April 1991) Independence (conservative), David ODDSSON; Progressive, Steingrimur HERMANNSSON; Social Democratic, Jon Baldvin HANNIBALSSON; People's Alliance (left socialist), Olafur Ragnar GRIMSSON; Citizens Party (conservative nationalist), Julius SOLNES; Women's List

Legal system

civil law system based on Danish law; does not accept compulsory ICJ jurisdiction

Legislative branch

bicameral Althingi with an Upper House (Efri Deild) and a Lower House (Nedri Deild)

Long-form name

Republic of Iceland

Member of

BIS, CCC, CE, CSCE, EBRD, ECE, EFTA, FAO, GATT, IAEA, IBRD, ICAO, ICC, ICFTU, IDA, IFC, ILO, IMF, IMO, INTELSAT, INTERPOL, IOC, ISO (correspondent), ITU, LORCS, NATO, NC, NEA, NIB, OECD, PCA, UN, UNCTAD, UNESCO, UPU, WHO, WIPO, WMO

National holiday

Anniversary of the Establishment of the Republic, 17 June (1944)

Suffrage

universal at age 20 President--last held on 29 June 1980 (next scheduled for June 1992); results--there were no elections in 1984 and 1988 as President Vigdis FINNBOGADOTTIR was unopposed; Althing--last held on 20 April 1991 (next to be held by April 1995); results--Independence 38.6%, Progressive 18.9%, Social Democratic 15.5%, People's Alliance 14.4%, Womens List 8.13%, Liberals 1.2%, other 3.27% seats--(63 total) Independence 26, Progressive 13, Social Democratic 10, People's Alliance 9, Womens List 5

Type

republic

Birth rate

17 births/1,000 population (1991)

Death rate

7 deaths/1,000 population (1991)

Ethnic divisions

homogeneous mixture of descendants of Norwegians and Celts

Infant mortality rate

7 deaths/1,000 live births (1991)

Labor force

134,429; commerce, finance, and services 55.4%, other manufacturing 14.3%., agriculture 5.8%, fish processing 7.9%, fishing 5.0% (1986)

Language

Icelandic

Life expectancy at birth

75 years male, 80 years female (1991)

Literacy

100% (male NA%, female NA%) age 15 and over can read and write (1976 est.)

Nationality

noun--Icelander(s); adjective--Icelandic

Net migration rate

0 migrants/1,000 population (1991)

Organized labor

60% of labor force

Population

259,742 (July 1991), growth rate 1.0% (1991)

Religion

Evangelical Lutheran 96%, other Protestant and Roman Catholic 3%, none 1% (1988)

Total fertility rate

2.2 children born/woman (1991)