--- title: Iceland — English Wikipedia · full text with trees · page 3 description: Wikipedia's «Iceland», whole, every sentence with its dependency tree and pragmatics, CC BY-SA 4.0. It begins: Iceland is a Nordic island country between the Arctic Ocean and the North Atlantic Ocean, located on the Mid-Atlantic Ridge between Europe and North America. --- [Mova](https://md.mova.elamur.ai/free/en/) · [this page in HTML](https://mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/3/) [home](https://md.mova.elamur.ai/free/en/) / [corpora](https://md.mova.elamur.ai/free/en/corpora/) / [wikipedia](https://md.mova.elamur.ai/free/en/corpora/wikipedia/) / [en](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/) / Iceland # Iceland · page 3 From Wikipedia, [«Iceland»](https://en.wikipedia.org/wiki/Iceland), revision of the 2026-09-01 dump, [CC BY-SA 4.0](https://creativecommons.org/licenses/by-sa/4.0/). The trees and pragmatics of these pages, Mova's parse of that text, are CC BY-SA 4.0 too. [1](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/) [2](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/2/) **3** [4](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/4/) [5](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/5/) [6](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/6/) The animals of Iceland include the [Icelandic sheep](https://en.wikipedia.org/wiki/Icelandic_sheep), [cattle](https://en.wikipedia.org/wiki/Icelandic_cattle), [chickens](https://en.wikipedia.org/wiki/Icelandic_chicken), [goats](https://en.wikipedia.org/wiki/Icelandic_goat), the sturdy [Icelandic horse](https://en.wikipedia.org/wiki/Icelandic_horse), and the [Icelandic Sheepdog](https://en.wikipedia.org/wiki/Icelandic_Sheepdog), all descendants of animals imported by Europeans.[203](../../203/ "tree and pragmatics") Wild mammals include the Arctic fox, [mink](https://en.wikipedia.org/wiki/Mink), mice, rats, rabbits, and [reindeer](https://en.wikipedia.org/wiki/Reindeer).[204](../../204/ "tree and pragmatics") [Polar bears](https://en.wikipedia.org/wiki/Polar_bears) occasionally visit the island, travelling from [Greenland](https://en.wikipedia.org/wiki/Greenland) on icebergs, but no Icelandic populations exist.[\[104\]](../../page/6/#ref-104 "note 104")[205](../../205/ "tree and pragmatics") In June 2008, two polar bears arrived in the same month.[\[105\]](../../page/6/#ref-105 "note 105")[206](../../206/ "tree and pragmatics") [Marine mammals](https://en.wikipedia.org/wiki/Marine_mammals) include the [grey seal](https://en.wikipedia.org/wiki/Grey_seal) (Halichoerus grypus) and [harbour seal](https://en.wikipedia.org/wiki/Harbour_seal) (Phoca vitulina).[207](../../207/ "tree and pragmatics") Many species of fish live in the ocean waters surrounding Iceland, and the [fishing industry](https://en.wikipedia.org/wiki/Fishing_industry) is a major part of Iceland's economy, accounting for roughly half of the country's total exports.[208](../../208/ "tree and pragmatics") Birds, especially seabirds, are an important part of Iceland's animal life.[209](../../209/ "tree and pragmatics") [Atlantic puffins](https://en.wikipedia.org/wiki/Atlantic_puffin), [skuas](https://en.wikipedia.org/wiki/Skua), and [black-legged kittiwakes](https://en.wikipedia.org/wiki/Black-legged_kittiwake) nest on its sea cliffs.[\[106\]](../../page/6/#ref-106 "note 106")[210](../../210/ "tree and pragmatics") [Commercial whaling](https://en.wikipedia.org/wiki/Commercial_whaling) is practised intermittently[\[107\]](../../page/6/#ref-107 "note 107")[\[108\]](../../page/6/#ref-108 "note 108") along with scientific whale hunts.[\[109\]](../../page/6/#ref-109 "note 109")[211](../../211/ "tree and pragmatics") Whale watching has become an important part of Iceland's economy since 1997.[\[110\]](../../page/6/#ref-110 "note 110")[212](../../212/ "tree and pragmatics") Around 1,300 species of insects are known in Iceland.[213](../../213/ "tree and pragmatics") This is low compared with other countries (over one million species have been described worldwide).[214](../../214/ "tree and pragmatics") Iceland was essentially free of [mosquitoes](https://en.wikipedia.org/wiki/Mosquitoes) until October 2025.[\[111\]](../../page/6/#ref-111 "note 111")[\[112\]](../../page/6/#ref-112 "note 112")[215](../../215/ "tree and pragmatics") ## Politics Main article: [Politics of Iceland](https://en.wikipedia.org/wiki/Politics_of_Iceland) Iceland is a [parliamentary](https://en.wikipedia.org/wiki/Parliamentary_system) [representative democratic](https://en.wikipedia.org/wiki/Representative_democratic) [republic](https://en.wikipedia.org/wiki/Republic), whereby the [president](https://en.wikipedia.org/wiki/President_of_Iceland) is the [head of state](https://en.wikipedia.org/wiki/Head_of_state), while the [prime minister](https://en.wikipedia.org/wiki/Prime_minister_of_Iceland) serves as the [head of government](https://en.wikipedia.org/wiki/Head_of_government) in a [multi-party system](https://en.wikipedia.org/wiki/Multi-party_system).[216](../../216/ "tree and pragmatics") Members of the [Icelandic parliament](https://en.wikipedia.org/wiki/Icelandic_parliament) are voted in by [proportional representation](https://en.wikipedia.org/wiki/Proportional_representation) within large [constituencies](https://en.wikipedia.org/wiki/Constituency).[217](../../217/ "tree and pragmatics") After the [2024 parliamentary elections](https://en.wikipedia.org/wiki/2024_Icelandic_parliamentary_election), the Icelandic government is led by a coalition between the [Social Democratic Alliance](https://en.wikipedia.org/wiki/Social_Democratic_Alliance), the centrist [Viðreisn](https://en.wikipedia.org/wiki/Viðreisn) (Liberal Reform Party), and the populist [People's Party](https://en.wikipedia.org/wiki/People%27s_Party_%28Iceland%29).[218](../../218/ "tree and pragmatics") The governing coalition's cabinet is led by prime minister [Kristrún Frostadóttir](https://en.wikipedia.org/wiki/Kristrún_Frostadóttir) of the Social Democrats.[219](../../219/ "tree and pragmatics") Other political parties with seats in the [Althing](https://en.wikipedia.org/wiki/Althing) (Parliament) are the centre-right [Independence Party](https://en.wikipedia.org/wiki/Independence_Party_%28Iceland%29), the right-wing [Centre Party](https://en.wikipedia.org/wiki/Centre_Party_%28Iceland%29), and the agrarian [Progressive Party](https://en.wikipedia.org/wiki/Progressive_Party_%28Iceland%29).[220](../../220/ "tree and pragmatics") According to [International IDEA](https://en.wikipedia.org/wiki/International_IDEA)'s Global State of Democracy (GSoD) Indices and Democracy Tracker, Iceland performs in the high range on overall democratic measures, with particular weaknesses in inclusive suffrage.[\[113\]](../../page/6/#ref-113 "note 113")[\[114\]](../../page/6/#ref-114 "note 114")[\[115\]](../../page/6/#ref-115 "note 115")[221](../../221/ "tree and pragmatics") In 2024, Iceland was ranked fourth in the strength of its democratic institutions[\[116\]](../../page/6/#ref-116 "note 116") and 10th in government transparency.[\[117\]](../../page/6/#ref-117 "note 117")[222](../../222/ "tree and pragmatics") The country has a high level of civic participation, with 81.4% voter turnout during the most recent elections,[\[118\]](../../page/6/#ref-118 "note 118") compared to an OECD average of 72%.[223](../../223/ "tree and pragmatics") Iceland scored second in Europe for their trust in legal institutions (police, parliament, and judiciary) at a mean of 73% trust as of 2018.[\[119\]](../../page/6/#ref-119 "note 119")[224](../../224/ "tree and pragmatics") Many political parties remain opposed to EU membership, primarily due to Icelanders' concern about losing control over their natural resources (particularly fisheries).[\[120\]](../../page/6/#ref-120 "note 120")[225](../../225/ "tree and pragmatics") ### Women's rights Women in Iceland first gained the right to vote in 1915 (with restrictions) and increased voting rights in 1920.[\[121\]](../../page/6/#ref-121 "note 121")[226](../../226/ "tree and pragmatics") Iceland was the first country in the world to have a political party formed and led entirely by women.[\[122\]](../../page/6/#ref-122 "note 122")[227](../../227/ "tree and pragmatics") Known as the [Women's List](https://en.wikipedia.org/wiki/Women%27s_List) (Kvennalistinn), it was founded in 1983 to advance the political, economic, and social needs of women.[228](../../228/ "tree and pragmatics") It left a lasting influence on Iceland's politics: every major party has a 40% quota for women.[229](../../229/ "tree and pragmatics") After the 2021 elections, 48% of members of parliament were female compared to the global average of 16% in 2009.[\[123\]](../../page/6/#ref-123 "note 123")[\[124\]](../../page/6/#ref-124 "note 124")[\[125\]](../../page/6/#ref-125 "note 125")[230](../../230/ "tree and pragmatics") [Vigdís Finnbogadóttir](https://en.wikipedia.org/wiki/Vigdís_Finnbogadóttir) was the world's first democratically elected female head of state.[231](../../231/ "tree and pragmatics") In 2009, [Jóhanna Sigurðardóttir](https://en.wikipedia.org/wiki/Jóhanna_Sigurðardóttir) became the world's [first openly LGBT](https://en.wikipedia.org/wiki/List_of_the_first_LGBT_holders_of_political_offices) [head of government](https://en.wikipedia.org/wiki/Head_of_government).[\[126\]](../../page/6/#ref-126 "note 126")[232](../../232/ "tree and pragmatics") ### Government See also: [Government of Iceland](https://en.wikipedia.org/wiki/Government_of_Iceland) Iceland is a [representative democracy](https://en.wikipedia.org/wiki/Representative_democracy) and a [parliamentary republic](https://en.wikipedia.org/wiki/Parliamentary_republic).[233](../../233/ "tree and pragmatics") The modern parliament, Alþingi (English: [Althing](https://en.wikipedia.org/wiki/Althing)), was founded in 1845 as an advisory body to the Danish monarch.[234](../../234/ "tree and pragmatics") It was widely seen as a re-establishment of the assembly founded in 930 in the [Commonwealth](https://en.wikipedia.org/wiki/Icelandic_Commonwealth) period and temporarily suspended from 1799 to 1845.[235](../../235/ "tree and pragmatics") Consequently, "it is arguably the world's oldest [parliamentary democracy](https://en.wikipedia.org/wiki/Parliamentary_system)."[\[127\]](../../page/6/#ref-127 "note 127")[236](../../236/ "tree and pragmatics") It has 63 members, elected for a maximum period of four years.[\[128\]](../../page/6/#ref-128 "note 128")[237](../../237/ "tree and pragmatics") The head of government is the prime minister, who with the [cabinet](https://en.wikipedia.org/wiki/Cabinet_of_Iceland), is responsible for [executive](https://en.wikipedia.org/wiki/Executive_%28government%29) government.[238](../../238/ "tree and pragmatics") The [president of Iceland](https://en.wikipedia.org/wiki/President_of_Iceland), in contrast, is a largely ceremonial head of state and serves as a diplomat, but may veto laws voted by the parliament and put them to a national referendum.[\[129\]](../../page/6/#ref-129 "note 129")[\[130\]](../../page/6/#ref-130 "note 130")[239](../../239/ "tree and pragmatics") They are elected by popular vote for a term of four years with no term limit.[240](../../240/ "tree and pragmatics") The current president is [Halla Tómasdóttir](https://en.wikipedia.org/wiki/Halla_Tómasdóttir), having been in office since 1 August 2024.[241](../../241/ "tree and pragmatics") The elections for the president, the Althing, and local municipal councils are all held separately every four years.[\[131\]](../../page/6/#ref-131 "note 131")[242](../../242/ "tree and pragmatics") The cabinet in the country's government is typically appointed by the president after a general election to the Althing.[243](../../243/ "tree and pragmatics") However, the appointment is usually negotiated by the leaders of the political parties, who decide amongst themselves which parties can form the cabinet and how to distribute its seats, as long as it has majority support in the Althing.[244](../../244/ "tree and pragmatics") If the party leaders are unable to come to an agreement within a reasonable period of time, the president will personally appoint the cabinet.[245](../../245/ "tree and pragmatics") That has not happened since the republic was founded in 1944, although in 1942 the regent, [Sveinn Björnsson](https://en.wikipedia.org/wiki/Sveinn_Björnsson), appointed a non-parliamentary government.[246](../../246/ "tree and pragmatics") Sveinn held the practical position of president at the time and later became the country's first official president in 1944.[247](../../247/ "tree and pragmatics") The governments of Iceland have always been coalition governments, with two or more parties involved, as no single political party has ever received a majority of seats in the Althing throughout the republican period.[248](../../248/ "tree and pragmatics") There is no legal consensus on the extent of the political power possessed by the office of the president; several provisions of the constitution appear to give the president some important powers, but other provisions and traditions suggest otherwise.[\[132\]](../../page/6/#ref-132 "note 132")[249](../../249/ "tree and pragmatics") In 1980, Icelanders elected [Vigdís Finnbogadóttir](https://en.wikipedia.org/wiki/Vigdís_Finnbogadóttir) as president, the world's first directly elected female head of state.[250](../../250/ "tree and pragmatics") She retired from office in 1996.[251](../../251/ "tree and pragmatics") In 2009, Iceland became the first country with an openly gay head of government when [Jóhanna Sigurðardóttir](https://en.wikipedia.org/wiki/Jóhanna_Sigurðardóttir) became prime minister.[\[133\]](../../page/6/#ref-133 "note 133")[252](../../252/ "tree and pragmatics") ### Administrative divisions Main article: [Administrative divisions of Iceland](https://en.wikipedia.org/wiki/Administrative_divisions_of_Iceland) Iceland is divided into regions, constituencies, and municipalities.[253](../../253/ "tree and pragmatics") The eight regions are primarily used for statistical purposes.[254](../../254/ "tree and pragmatics") District court jurisdictions also use an older version of this division.[\[78\]](../../page/6/#ref-78 "note 78")[255](../../255/ "tree and pragmatics") Until 2003, the constituencies for the parliamentary elections were the same as the regions, but by an amendment to the constitution, they were changed to the current six constituencies:[256](../../256/ "tree and pragmatics") - [Reykjavík North](https://en.wikipedia.org/wiki/Constituencies_of_Iceland) and [Reykjavík South](https://en.wikipedia.org/wiki/Constituencies_of_Iceland) (city regions)[257](../../257/ "tree and pragmatics") - [Southwest](https://en.wikipedia.org/wiki/Constituencies_of_Iceland) (four [non-contiguous](https://en.wikipedia.org/wiki/Enclave_and_exclave) suburban areas around Reykjavík)[258](../../258/ "tree and pragmatics") - [Northwest](https://en.wikipedia.org/wiki/Constituencies_of_Iceland) and [Northeast](https://en.wikipedia.org/wiki/Constituencies_of_Iceland) (northern half of Iceland, split)[259](../../259/ "tree and pragmatics") - [South](https://en.wikipedia.org/wiki/Constituencies_of_Iceland) (southern half of Iceland, excluding Reykjavík and suburbs)[260](../../260/ "tree and pragmatics") The redistricting change was made to balance the weight of different districts of the country, since previously a vote cast in the sparsely populated areas around the country would count much more than a vote cast in the Reykjavík city area.[261](../../261/ "tree and pragmatics") The imbalance between districts has been reduced by the new system, but it still exists.[\[78\]](../../page/6/#ref-78 "note 78")[262](../../262/ "tree and pragmatics") Sixty-two municipalities in Iceland govern local matters like schools, transport, and zoning.[\[134\]](../../page/6/#ref-134 "note 134")[263](../../263/ "tree and pragmatics") These are the actual [second-level subdivisions](https://en.wikipedia.org/wiki/Administrative_division) of Iceland, as the constituencies have no relevance except in elections and for statistical purposes.[264](../../264/ "tree and pragmatics") Reykjavík is by far the most populous municipality, about four times more populous than [Kópavogur](https://en.wikipedia.org/wiki/Kópavogur), the second largest,[\[78\]](../../page/6/#ref-78 "note 78") which is itself a suburb of Reykjavík.[265](../../265/ "tree and pragmatics") (The white areas on the maps show (uninhabited) glaciers.)[266](../../266/ "tree and pragmatics") ### Foreign relations Main article: [Foreign relations of Iceland](https://en.wikipedia.org/wiki/Foreign_relations_of_Iceland) See also: [Accession of Iceland to the European Union](https://en.wikipedia.org/wiki/Accession_of_Iceland_to_the_European_Union) Iceland, which is a member of the [UN](https://en.wikipedia.org/wiki/UN), [NATO](https://en.wikipedia.org/wiki/NATO), [EFTA](https://en.wikipedia.org/wiki/EFTA), [Council of Europe](https://en.wikipedia.org/wiki/Council_of_Europe), and [OECD](https://en.wikipedia.org/wiki/OECD), maintains diplomatic and commercial relations with practically all nations, but its ties with the Nordic countries, Germany, the United States, Canada, and the other NATO nations are particularly close.[267](../../267/ "tree and pragmatics") Historically, due to cultural, economic, and linguistic similarities, Iceland is a [Nordic country](https://en.wikipedia.org/wiki/Nordic_country), and it participates in intergovernmental cooperation through the [Nordic Council](https://en.wikipedia.org/wiki/Nordic_Council).[268](../../268/ "tree and pragmatics") Iceland is a member of the [European Economic Area](https://en.wikipedia.org/wiki/European_Economic_Area) (EEA), which allows the country access to the single market of the European Union (EU).[269](../../269/ "tree and pragmatics") It has never been a member state of the EU, but in July 2009, the Icelandic parliament, the Althing, voted in favour of applying for EU membership[\[135\]](../../page/6/#ref-135 "note 135") and Iceland officially applied on 17 July 2009.[\[136\]](../../page/6/#ref-136 "note 136")[270](../../270/ "tree and pragmatics") However, in 2013, opinion polls showed that many Icelanders were now against joining the EU; after the [2013 Icelandic parliamentary election](https://en.wikipedia.org/wiki/2013_Icelandic_parliamentary_election) the two parties which formed the island's new government—the centrist Progressive Party and the right-wing Independence Party—announced that they would hold a referendum on EU membership.[\[137\]](../../page/6/#ref-137 "note 137")[271](../../271/ "tree and pragmatics") In 2015, Minister for Foreign Affairs [Gunnar Bragi Sveinsson](https://en.wikipedia.org/wiki/Gunnar_Bragi_Sveinsson) informed the EU that Iceland would no longer pursue membership, but the application was not formally withdrawn and there have been subsequent calls for a referendum on the issue.[\[138\]](../../page/6/#ref-138 "note 138")[\[139\]](../../page/6/#ref-139 "note 139")[272](../../272/ "tree and pragmatics") A [referendum on the resumption of European Union membership negotiations](https://en.wikipedia.org/wiki/2026_Icelandic_European_Union_membership_negotiations_referendum) was held on 29 August 2026, with the No campaign winning with 52.8% of the vote, rejecting the restart of negotiations.[\[140\]](../../page/6/#ref-140 "note 140")[\[141\]](../../page/6/#ref-141 "note 141")[273](../../273/ "tree and pragmatics") ### Military Main article: [Defence of Iceland](https://en.wikipedia.org/wiki/Defence_of_Iceland) Iceland has no [standing army](https://en.wikipedia.org/wiki/Standing_army) but has the [Icelandic Coast Guard](https://en.wikipedia.org/wiki/Icelandic_Coast_Guard), which also maintains the [Iceland Air Defence System](https://en.wikipedia.org/wiki/Iceland_Air_Defence_System) and an [Iceland Crisis Response Unit](https://en.wikipedia.org/wiki/Iceland_Crisis_Response_Unit) to support peacekeeping missions and perform paramilitary functions.[274](../../274/ "tree and pragmatics") The [Iceland Defense Force](https://en.wikipedia.org/wiki/Iceland_Defense_Force) (IDF) was a [military command](https://en.wikipedia.org/wiki/Military_command) of the [United States Armed Forces](https://en.wikipedia.org/wiki/United_States_Armed_Forces) from 1951 to 2006.[275](../../275/ "tree and pragmatics") The IDF, created at the request of [NATO](https://en.wikipedia.org/wiki/NATO), came into existence when the United States signed an agreement to provide for the defence of Iceland.[276](../../276/ "tree and pragmatics") The IDF also included civilian Icelanders and military members of other NATO nations.[277](../../277/ "tree and pragmatics") The IDF was downsized after the end of the [Cold War](https://en.wikipedia.org/wiki/Cold_War), and the [United States Air Force](https://en.wikipedia.org/wiki/United_States_Air_Force) maintained four to six [interceptor aircraft](https://en.wikipedia.org/wiki/Interceptor_aircraft) at the [Naval Air Station Keflavik](https://en.wikipedia.org/wiki/Naval_Air_Station_Keflavik) until they were withdrawn on 30 September 2006.[278](../../278/ "tree and pragmatics") Since May 2008, NATO nations have periodically deployed fighters to patrol Icelandic airspace under the [Icelandic Air Policing](https://en.wikipedia.org/wiki/Icelandic_Air_Policing) mission.[\[142\]](../../page/6/#ref-142 "note 142")[\[143\]](../../page/6/#ref-143 "note 143")[279](../../279/ "tree and pragmatics") Iceland supported the [2003 invasion of Iraq](https://en.wikipedia.org/wiki/2003_invasion_of_Iraq) despite much domestic controversy, deploying a Coast Guard [EOD](https://en.wikipedia.org/wiki/Explosive_Ordnance_Disposal) team to Iraq,[\[144\]](../../page/6/#ref-144 "note 144") which was replaced later by members of the [Iceland Crisis Response Unit](https://en.wikipedia.org/wiki/Iceland_Crisis_Response_Unit).[280](../../280/ "tree and pragmatics") Iceland has also participated in the [conflict in Afghanistan](https://en.wikipedia.org/wiki/War_in_Afghanistan_%282001–2021%29)[\[145\]](../../page/6/#ref-145 "note 145") and the [1999 NATO bombing of Yugoslavia](https://en.wikipedia.org/wiki/1999_NATO_bombing_of_Yugoslavia).[\[146\]](../../page/6/#ref-146 "note 146")[281](../../281/ "tree and pragmatics") Despite the ongoing financial crisis the first [new patrol ship](https://en.wikipedia.org/wiki/ICGV_Þór_%282009%29) in decades was launched on 29 April 2009.[\[147\]](../../page/6/#ref-147 "note 147")[282](../../282/ "tree and pragmatics") Iceland was the neutral host of the historic 1986 [Reagan–Gorbachev summit](https://en.wikipedia.org/wiki/Reykjavík_Summit) in Reykjavík, which set the stage for the end of the [Cold War](https://en.wikipedia.org/wiki/Cold_War).[283](../../283/ "tree and pragmatics") Iceland's principal historical international disputes involved disagreements over [exclusive economic zones](https://en.wikipedia.org/wiki/Exclusive_economic_zone).[284](../../284/ "tree and pragmatics") Conflict with the United Kingdom led to a series of so-called [Cod Wars](https://en.wikipedia.org/wiki/Cod_Wars), which included confrontations between the Icelandic Coast Guard and the [Royal Navy](https://en.wikipedia.org/wiki/Royal_Navy) regarding British fishermen: in 1952–1956 due to the extension of Iceland's fishing zone from 3 to 4 nmi, in 1958–1961 following a further extension to 12 nmi, in 1972–1973 with another extension to 50 nmi, and in 1975–1976 after another extension to 200 nmi.[\[148\]](../../page/6/#ref-148 "note 148")[285](../../285/ "tree and pragmatics") According to the 2024 [Global Peace Index](https://en.wikipedia.org/wiki/Global_Peace_Index), Iceland is the most peaceful country in the world, due to its lack of armed forces, low crime rate, and high level of socio-political stability.[\[149\]](../../page/6/#ref-149 "note 149")[286](../../286/ "tree and pragmatics") Iceland is listed in [Guinness World Records](https://en.wikipedia.org/wiki/Guinness_World_Records) as the "country ranked most at peace"[\[150\]](../../page/6/#ref-150 "note 150") and the "lowest military spending per capita".[\[151\]](../../page/6/#ref-151 "note 151")[287](../../287/ "tree and pragmatics") ## Economy Main article: [Economy of Iceland](https://en.wikipedia.org/wiki/Economy_of_Iceland) In 2022, Iceland was the [eighth-most productive country in the world per capita](https://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita) (US$78,837), and the thirteenth-most productive by [GDP](https://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_capita) at [purchasing power parity](https://en.wikipedia.org/wiki/Purchasing_power_parity) ($69,833).[\[152\]](../../page/6/#ref-152 "note 152")[288](../../288/ "tree and pragmatics") About 85% of the total [primary energy](https://en.wikipedia.org/wiki/Primary_energy) supply in Iceland is derived from domestic renewable energy sources.[\[153\]](../../page/6/#ref-153 "note 153")[289](../../289/ "tree and pragmatics") Use of abundant [hydroelectric](https://en.wikipedia.org/wiki/Hydroelectric) and [geothermal power](https://en.wikipedia.org/wiki/Geothermal_power) has made Iceland the world's largest electricity producer per capita.[\[154\]](../../page/6/#ref-154 "note 154")[290](../../290/ "tree and pragmatics") Historically, Iceland's economy depended heavily on fishing, which still provides around 20% of export earnings and employs 7% of the workforce.[\[78\]](../../page/6/#ref-78 "note 78")[\[155\]](../../page/6/#ref-155 "note 155")[291](../../291/ "tree and pragmatics") The economy is now more dependent on tourism, but important sectors continue to be fish and fish products, aluminium, and [ferrosilicon](https://en.wikipedia.org/wiki/Ferrosilicon).[292](../../292/ "tree and pragmatics") Iceland's economic dependence on fishing is diminishing, from an export share of 90% in the 1960s to 20% in 2020.[\[156\]](../../page/6/#ref-156 "note 156")[\[155\]](../../page/6/#ref-155 "note 155")[293](../../293/ "tree and pragmatics") Until the 20th century, Iceland was a fairly poor country.[294](../../294/ "tree and pragmatics") [Whaling in Iceland](https://en.wikipedia.org/wiki/Whaling_in_Iceland) was historically significant.[295](../../295/ "tree and pragmatics") It is now one of the most developed countries in the world.[296](../../296/ "tree and pragmatics") Strong economic growth led Iceland to be ranked [third](https://en.wikipedia.org/wiki/List_of_countries_by_Human_Development_Index) in the [United Nations](https://en.wikipedia.org/wiki/United_Nations)' [Human Development Index](https://en.wikipedia.org/wiki/Human_Development_Index) report for 2021/2022.[\[8\]](../../page/6/#ref-8 "note 8")[297](../../297/ "tree and pragmatics") According to the Economist Intelligence Index of 2011, Iceland had the second-highest quality of life in the world.[\[157\]](../../page/6/#ref-157 "note 157")[298](../../298/ "tree and pragmatics") Based on the [Gini coefficient](https://en.wikipedia.org/wiki/Gini_coefficient), Iceland also has one of the lowest rates of income inequality in the world,[\[158\]](../../page/6/#ref-158 "note 158") and when [adjusted for inequality](https://en.wikipedia.org/wiki/List_of_countries_by_inequality-adjusted_HDI), its HDI ranking is sixth.[\[159\]](../../page/6/#ref-159 "note 159")[299](../../299/ "tree and pragmatics") Iceland's unemployment rate has declined consistently since the crisis, with 4.8% of the labour force being unemployed as of 2012 June, compared to 6% in 2011 and 8.1% in 2010.[\[78\]](../../page/6/#ref-78 "note 78")[\[160\]](../../page/6/#ref-160 "note 160")[\[161\]](../../page/6/#ref-161 "note 161")[300](../../300/ "tree and pragmatics") The national currency of Iceland is the [Icelandic króna](https://en.wikipedia.org/wiki/Icelandic_króna) (ISK).[301](../../301/ "tree and pragmatics") Iceland is the only country in the world with a population under two million to have a floating exchange rate and an independent monetary policy.[\[162\]](../../page/6/#ref-162 "note 162")[302](../../302/ "tree and pragmatics") A poll released on 5 March 2010 by Capacent [Gallup](https://en.wikipedia.org/wiki/Gallup_%28company%29) showed that 31% of respondents were in favour of adopting the [euro](https://en.wikipedia.org/wiki/Euro) and 69% opposed.[\[163\]](../../page/6/#ref-163 "note 163")[303](../../303/ "tree and pragmatics") Another Capacent Gallup poll conducted in February 2012 discovered that 67.4% of Icelanders would reject EU membership in a referendum.[\[164\]](../../page/6/#ref-164 "note 164")[304](../../304/ "tree and pragmatics") Iceland's economy has been diversifying into manufacturing and service industries in the last decade, including software production, [biotechnology](https://en.wikipedia.org/wiki/Biotechnology), and finance; industry accounts for around a quarter of economic activity, while services comprise close to 70%.[\[165\]](../../page/6/#ref-165 "note 165")[305](../../305/ "tree and pragmatics") The tourism sector is expanding, especially in [ecotourism](https://en.wikipedia.org/wiki/Ecotourism) and whale-watching.[306](../../306/ "tree and pragmatics") On average, Iceland receives around 1.1 million visitors annually, which is more than three times the native population.[\[166\]](../../page/6/#ref-166 "note 166")[307](../../307/ "tree and pragmatics") 1.7 million people visited Iceland in 2016, 3 times more than the number that came in 2010.[\[167\]](../../page/6/#ref-167 "note 167")[308](../../308/ "tree and pragmatics") Iceland's agriculture industry, accounting for 5.4% of GDP,[\[78\]](../../page/6/#ref-78 "note 78") consists mainly of [potatoes](https://en.wikipedia.org/wiki/Potato), green vegetables (in [greenhouses](https://en.wikipedia.org/wiki/Greenhouse)), [mutton](https://en.wikipedia.org/wiki/Mutton), and dairy products.[\[78\]](../../page/6/#ref-78 "note 78")[309](../../309/ "tree and pragmatics") The financial centre is [Borgartún](https://en.wikipedia.org/wiki/Borgartún) in Reykjavík, which hosts a large number of companies and three investment banks.[310](../../310/ "tree and pragmatics") Iceland's [stock market](https://en.wikipedia.org/wiki/Stock_market), the [Iceland Stock Exchange](https://en.wikipedia.org/wiki/Iceland_Stock_Exchange) (ISE), was established in 1985.[\[168\]](../../page/6/#ref-168 "note 168") as of 2019, Iceland ranks 26th in the [World Economic Forum](https://en.wikipedia.org/wiki/World_Economic_Forum)'s Global Competitive Index, two places lower than in 2018.[\[169\]](../../page/6/#ref-169 "note 169")[311](../../311/ "tree and pragmatics") According to the [Global Innovation Index](https://en.wikipedia.org/wiki/Global_Innovation_Index), Iceland is the 22nd most innovative country in the world in 2024.[\[170\]](../../page/6/#ref-170 "note 170")[312](../../312/ "tree and pragmatics") [1](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/) [2](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/2/) **3** [4](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/4/) [5](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/5/) [6](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/6/) - ← previous: [page 2](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/2/) - next →: [page 4](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/Iceland/page/4/) - ↑ back to [English Wikipedia](https://md.mova.elamur.ai/free/en/corpora/wikipedia/en/)