| variable | 1980-1989 | 1990-1999 | 2000-2007 | 2008-2009 | 2010-2019 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| real gdp growth | 2.79 | 2.58 | 4.66 | -5.25 | 2.08 | 5.0 | -1.3 | 1.3 | 1.9 | 2.1 |
| CPI % | 34.34 | 3.23 | 5.68 | 8.7 | 2.87 | 8.7 | 5.9 | 4.1 | 4.8 | 2.8 |
| Unemployment rate | 1.03 | 4.13 | 3.14 | 8.15 | 5.11 | 3.4 | 3.4 | 4.4 | 4.2 | 4.3 |
| Debt/GDP % | 30.49 | 53.84 | 80.29 | 129.85 | 95.65 | 61.5 | 60.4 | 56.1 | 53.6 | 51.7 |
| Current account balance/GDP % | -3.09 | -3.17 | -11.26 | -7.3 | 3.82 | -1.2 | -3.2 | -3.6 | -0.7 | -0.1 |
Data derived from World Economic Outlook Database. To see main macroeconomic indicator in graphs click here
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, which was established in 930. Independent for over 300 years, Iceland was subsequently ruled by Norway and Denmark. Fallout from the Askja volcano of 1875 devastated the Icelandic economy and caused widespread famine. Over the next quarter-century, 20% of the island's population emigrated, mostly to Canada and the US. Denmark granted limited home rule in 1874 and complete independence in 1944. The second half of the 20th century saw substantial economic growth driven primarily by the fishing industry. The economy diversified greatly after the country joined the European Economic Area in 1994, but the global financial crisis hit Iceland especially hard in the years after 2008. The economy is now on an upward trajectory, primarily thanks to a tourism and construction boom. Literacy, longevity, and social cohesion are first-rate by world standards.
Area: 103,000 sq km km2
Climate: temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers
Natural resources: fish, hydropower, geothermal power, diatomite
Groups: Icelandic 78.7%, Polish 5.8%, Danish 1%, Ukrainian 1%, other 13.5% (2024 est.)
Languages:
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.)
Capital: Reykjavik
Government type: unitary parliamentary republic
Chief of state: President Halla TOMASDOTTIR (since 1 August 2024)
Head of government: Prime Minister Kristrun FROSTADOTTIR (since 21 December 2024)
Description: Parliament (Althingi) - unicameral
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
tourism, fish processing; aluminum smelting; geothermal power, hydropower; medical/pharmaceutical products
GDP by sector: Agriculture: 4% (2024 est.), Industry: 19.4% (2024 est.), Services: 65.5% (2024 est.)
Export partners: Netherlands 27%, Germany 11%, USA 10%, UK 8%, Norway 6% (2023)
Export commodities: aluminum, fish, orthopedic appliances, animal meal, iron alloys (2023)
Import partners: Norway 11%, China 9%, Germany 9%, Netherlands 8%, USA 7% (2023)
Import commodities: refined petroleum, cars, carbon-based electronics, aluminum oxide, computers (2023)
Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom
Information derived from worldfactbook.io (Lupon Media), open successor to the CIA World Factbook. Data sourced from World Bank, IMF, UN and other international organizations.