Country name:
conventional long form: Republic of Iceland
conventional short form: Iceland
local long form: Lydhveldidh Island
local short form: Island
Government type:
constitutional republic
Capital:
Reykjavik
Administrative divisions:
8 regions; Austurland, Hofudhborgarsvaedhi, Nordhurland Eystra,
Nordhurland Vestra, Sudhurland, Sudhurnes, Vestfirdhir, Vesturland
Independence:
1 December 1918 (became a sovereign state under the Danish Crown);
17 June 1944 (from Denmark)
National holiday:
Independence Day, 17 June (1944)
Constitution:
16 June 1944, effective 17 June 1944; amended many times
Legal system:
civil law system based on Danish law; has not accepted compulsory
ICJ jurisdiction
Suffrage:
18 years of age; universal
Executive branch:
chief of state: President Olafur Ragnar GRIMSSON (since 1 August
1996)
head of government: Prime Minister Halldor ASGRIMSSON (since 15
September 2004); note - Former Prime Minister David ODDSSON switched
positions with former Foreign Minister Halldor ASGRIMMSON
cabinet: Cabinet appointed by the prime minister and approved by
parliament
elections: president, which is largely a ceremonial post, elected by
popular vote for a four-year term; election last held 26 June 2004
(next to be held June 2008); following legislative elections, the
leader of the majority party or the leader of the majority coalition
is usually the prime minister
election results: Olafur Ragnar GRIMSSON wins with 85.6% of the
vote, Baldur AGUSTSSON 12.5%, Astthor MAGNUSSON 1.9%
Legislative branch:
unicameral Parliament or Althing (63 seats; members are elected by
popular vote to serve four-year terms)
elections: last held 10 May 2003 (next to be held by May 2007)
election results: percent of vote by party - Independence Party
33.7%, Social Democratic Alliance 31.0%, Progressive Party 17.7%,
Left-Green Alliance 8.8%, Liberal Party 7.4%; seats by party -
Independence Party 22, Social Democratic Alliance 20, Progressive
Party 12, Left-Green Alliance 5, Liberal Party 4
Judicial branch:
Supreme Court or Haestirettur (justices are appointed for life by
the Minister of Justice); eight district courts (justices are
appointed for life by the Minister of Justice)
Political parties and leaders:
Independence Party or IP [David ODDSSON]; Left-Green Alliance or
LGP [Steingrimur SIGFUSSON]; Liberal Party or LP [Gudjon
KRISTJANSSON]; Progressive Party or PP [Halldor ASGRIMSSON]; Social
Democratic Alliance (includes People's Alliance or PA, Social
Democratic Party or SDP, Women's List) or SDA [Ingibjorg Solrun
GISLADOTTIR]
Political pressure groups and leaders:
NA
International organization participation:
Australia Group, BIS, CBSS, CE, EAPC, EBRD, EFTA, FAO, IAEA, IBRD,
ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF,
IMO, Interpol, IOC, ISO, ITU, MIGA, NATO, NC, NEA, NIB, OECD, OPCW,
OSCE, PCA, UN, UNCTAD, UNESCO, UPU, WCO, WEU (associate), WHO, WIPO,
WMO, WTO
Diplomatic representation in the US:
chief of mission: Ambassador Helgi AGUSTSSON
chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20005–1704
telephone: [1] (202) 265–6653
FAX: [1] (202) 265–6656
consulate(s) general: New York
Diplomatic representation from the US:
chief of mission: Ambassador James I. GADSDEN
embassy: Laufasvegur 21, 101 Reykjavik
mailing address: US Embassy, PSC 1003, Box 40, FPO AE 09728–0340
telephone: [354] 562–9100
FAX: [354] 562–9118
Flag description:
blue with a red cross outlined in white extending 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)
Economy Iceland
Economy - overview: Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system (including generous housing subsidies), low unemployment, and remarkably even distribution of income. In the absence of other natural resources (except for abundant geothermal power), the economy depends heavily on the fishing industry, which provides 70% of export earnings and employs 8% of the work force. The economy remains sensitive to declining fish stocks as well as to fluctuations in world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. Government policies include reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy, and privatizing state-owned industries. The government remains opposed to EU membership, primarily because of Icelanders' concern about losing control over their fishing resources. Iceland's economy has been diversifying into manufacturing and service industries in the last decade, and new developments in software production, biotechnology, and financial services are taking place. The tourism sector is also expanding, with the recent trends in ecotourism and whale watching. Growth had been remarkably steady in 1996–2001 at 3%-5%, but could not be sustained in 2002 in an environment of global recession. Growth resumed in 2003, and estimates call for strong growth until 2007, slowly dropping until the end of the decade.
GDP (purchasing power parity):
$9.373 billion (2004 est.)
GDP - real growth rate:
1.8% (2004 est.)
GDP - per capita:
purchasing power parity - $31,900 (2004 est.)
GDP - composition by sector: agriculture: 11.2% industry: 9.6% services: 79.2% (2004 est.)
Labor force: 158,100 (2004 est.)
Labor force - by occupation: agriculture, fishing and fish processing 10.3%, industry 18.3%, services 71.4% (2003)
Unemployment rate:
3.1% (2004 est.)
Population below poverty line:
NA%
Household