The Republic of Iceland, commonly known as Iceland, has its capital in Reykjavik. It is located in the middle of the North Atlantic, near the Arctic Circle, and is the second-largest island in Europe. Iceland has a total area of 103,000 square kilometers, with a coastline of approximately 4,970 kilometers. Glaciers cover 11.6% of the country, and three-quarters of the land lies at an altitude of 400 to 800 meters. Iceland has a cold temperate maritime climate. The country is divided into 21 municipalities and 203 electoral districts. As of September 2023, Iceland's total population is 397,000.
Iceland is a highly developed European country with one of the highest per capita GDP and Human Development Index rankings in the world, making it one of the most livable countries globally. Fisheries are the cornerstone of Iceland’s economy, with the fishing industry and its related sectors being the most important economic industries. The industrial sector mainly consists of energy-intensive industries such as aluminum smelting and fish processing. Iceland attracts tourists from all over the world with its unique landscapes, including volcanoes, glaciers, hot springs, and the Northern Lights. Iceland is a member of the United Nations, the World Trade Organization, NATO, the European Free Trade Association, the European Economic Area, the Organisation for Economic Co-operation and Development, and the Nordic Council, and is a signatory to the Schengen Agreement, though it has not joined the European Union. In 2022, Iceland's GDP was $27.8 billion, with a growth rate of 6.4%, and the per capita GDP was $74,000. Preliminary election results announced on June 2, 2024, showed that businesswoman Halla Tomasdottir defeated former Prime Minister Katrín Jakobsdottir and other contenders to win the election. Tomasdottir will become Iceland's second female president.
Ingolfur Arnarson, a nobleman exiled from Norway, was one of Iceland's first settlers. In 874, he founded a settlement in Reykjavik and gave the city its name. In 930, Iceland established the world's oldest parliament, the Althingi. From 1262 onwards, Iceland was ruled first by Norway and then Denmark. On June 17, 1944, the Republic of Iceland was founded.
The island is known for its numerous volcanoes, earning it the nickname "The Island of Fire and Ice." It has between 200-300 volcanoes, with 40-50 of them still active. Major volcanoes include Laki, Hvannadalshnukur, Hekla, and Katla. Iceland is also famous for its abundance of hot springs, more than anywhere else in the world, which is why it’s called the "Land of Fire and Ice." There are around 250 alkaline hot springs on the island, with the largest producing 200 liters of water per second.
Iceland has a subarctic oceanic climate, known for its unpredictability. Thanks to the influence of the North Atlantic Current, its temperatures are milder than other places at the same latitude. The average temperature is 11.7°C in July, 1.4°C in January, and 5.5°C annually. The summer days are long, while winter days are very short. The Northern Lights are visible during the autumn and winter months.
Iceland is the country with the richest geothermal resources in the world. By the end of 2019, geothermal heating accounted for 90% of the nation's heating needs. Iceland also has abundant electricity resources, with a reliable power supply and voltage stability ranked first globally. As of the end of 2019, the country's total installed power capacity was around 2.924 million kilowatts, of which hydropower accounted for 2.096 million kilowatts (71.7%), geothermal for 753,000 kilowatts (25.8%), fossil fuels for 73,000 kilowatts (2.5%), and wind power for 240 kilowatts (0.01%).
Iceland is one of the safest countries in the world. It has excellent public security, with no anti-government armed groups and no recorded terrorist attacks.
Iceland is also one of the most expensive countries in the world. Due to its limited domestic resources and a relatively weak manufacturing sector, most goods, except for a few, rely on imports. The main sources of imports are concentrated in Europe and North America, with prices generally higher than in European markets. Additionally, Iceland has high labor costs, making some domestic products even more expensive than imported ones.