Location: Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom.
Land Area: 103,000 sq kilometers (39,768 sq. miles)
Coastline: 4,988 km (3,100 miles)
Highest Point: Hvannadalshnukur 2,119 m (6,950 ft.) at Vatnajokull glacier
Lowest Point: Atlantic Ocean 0 m
Notable Landmarks: Take a peek...

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 percent of export earnings and employs 12 percent 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. 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 to 2001 at three percent to five percent, but could not be sustained in 2002 in an environment of global recession. Growth resumed in 2003, and inflation dropped back from five percent to two percent.

Gross Domestic Product (GDP): $8.678 billion (2003 est.)
GDP Per Capita: $30,900 (2003 est.)
Number of Workers: 160,000 (2003 est.)
Unemployment Rate: 3.4 percent (2003 est.)
Industries: Fish processing; aluminum smelting, ferrosilicon production, geothermal power, tourism
Currency: Icelandic krona (ISK) What does it look like?

Type of Government: Constitutional republic
Head of State: President Olafur Ragnar Grimsson (since 1 August 1996)
Head of Government: Prime Minister Halldor Asgrimsson (since 15 September 2004)
Capital City: Reykjavik
Legal Age to Vote: 18, universal
Flag Design: 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.
Official Language: Icelandic, English, Nordic languages, German widely spoken.
Religions: Evangelical Lutheran 87.1 percent; other Protestant 4.1 percent, Roman Catholic 1.7 percent, other 7.1 percent. (2002)

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 Althing, 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 percent of the island's population emigrated, mostly to Canada and the US. Limited home rule from Denmark was granted in 1874 and complete independence attained in 1944. Literacy, longevity, income, and social cohesion are first-rate by world standards.