World Happiness Report for Iceland 2024
- Overall Happiness Rank Iceland: 3
- Happiness Score Iceland:7.525
Happiness is a subjective concept that has long been debated by philosophers, psychologists, and economists alike. However, in recent years, there has been a growing interest in quantifying happiness and using it as a measure of a nation’s overall well-being. This is where the concept of the Happiness Index comes into play.
What is the Happiness Index?
The Happiness Index is a measure that attempts to quantify the overall happiness and life satisfaction of a country’s population. It is based on the idea that traditional economic indicators, such as Gross Domestic Product (GDP), do not fully capture the overall well-being of a society. The Happiness Index takes into account various factors that contribute to an individual’s sense of happiness and life satisfaction, including social support, freedom to make life choices, healthy life expectancy, and perceptions of corruption.
How is the Happiness Index Calculated?
The Happiness Index is calculated through a combination of subjective and objective data. The primary source of data is the Gallup World Poll, which is a survey conducted in over 160 countries. The survey asks respondents to rate their overall life satisfaction on a scale of 0 to 10, with 0 being the worst possible life and 10 being the best possible life.
In addition to the life satisfaction score, the Happiness Index also takes into account the following factors:
- GDP per capita: This is a measure of a country’s economic output and standard of living.
- Social support: This factor measures the extent to which individuals have supportive relationships and love in their lives.
- Healthy life expectancy: This is a measure of the number of years an individual is expected to live in good health.
- Freedom to make life choices: This factor measures the extent to which individuals are able to make decisions about their lives without external constraints.
- Generosity: This factor measures the extent to which individuals engage in charitable activities and donate to others.
- Perceptions of corruption: This factor measures the extent to which individuals perceive their society to be free from corruption.
These factors are weighted and combined to produce an overall Happiness Index score for each country.
What Does the Happiness Index Affect?
The Happiness Index has significant implications for policymaking and societal well-being. Countries with higher Happiness Index scores are generally considered to have better overall quality of life and well-being for their citizens. This can have positive impacts on various aspects of society, including:
- Economic productivity: Happier individuals tend to be more productive and engaged in their work, which can contribute to a country’s economic growth.
- Public health: Higher levels of happiness and life satisfaction are associated with better physical and mental health outcomes, which can reduce healthcare costs and improve overall well-being.
- Social cohesion: Societies with higher levels of happiness tend to have stronger social bonds and lower levels of conflict and crime.
- Environmental sustainability: Happier individuals may be more likely to engage in environmentally-friendly behaviors and support policies that promote sustainability.
By focusing on the factors that contribute to happiness and well-being, policymakers can develop strategies to improve the overall quality of life for their citizens. The Happiness Index provides a valuable tool for measuring progress and identifying areas where improvements can be made.
Short information
- Abbreviation of Iceland. IS.
- Home to the world’s oldest parliament, the Althing, established in 930 AD
- Known for its unique and stunning natural landscapes, including geysers, waterfalls, and glaciers
- Has a highly developed renewable energy sector, with nearly 100% of its electricity coming from renewable sources
Iceland – A Comprehensive Overview
Early History
The first inhabitants of Iceland were Norse settlers and Celtic monks who arrived in the late 8th century. The island was first discovered by Vikings who established the world’s oldest existing parliament, the Althing, in 930 AD.
Kingdoms and Empires
Iceland remained an independent Commonwealth until the 13th century when it fell under Norwegian rule. It later came under Danish control in 1380 and remained a part of the Danish Kingdom until gaining independence in 1944.
Independence and Modern Era
Iceland gained independence from Denmark in 1944 after centuries of colonial rule. The country adopted a constitutional republic and joined NATO in 1949. Iceland has remained a peaceful and stable democracy, known for its progressive policies and strong welfare system.
Current Political Situation
Iceland is a unitary parliamentary constitutional republic with a multi-party system. The current president is Guðni Th. Jóhannesson, and the prime minister is Katrín Jakobsdóttir, who leads a coalition government.
International Relations
Iceland is a member of various international organizations, including the UN, NATO, EEA, and the Nordic Council. It has maintained a policy of neutrality and has been at the forefront of promoting global peace initiatives.
Human Development and Economy
Iceland has a highly developed mixed economy with a focus on fishing, aluminum production, tourism, and renewable energy. It consistently ranks among the highest in the world for human development, income equality, and quality of life.
Cultural Highlights
Icelanders take great pride in their rich cultural heritage, which includes Viking traditions, unique literature, and a vibrant arts scene. The country is also known for its stunning natural landscapes, including geysers, glaciers, and the Northern Lights.
Main facts
1. Location
Iceland is an island country located in the North Atlantic Ocean, straddling the Mid-Atlantic Ridge. It lies northwest of the United Kingdom and mainland Europe, east of Greenland, and south of the Arctic Circle.
2. Map References
Iceland is situated in Northern Europe, west of Norway and the Scandinavian Peninsula.
3. Area – Comparative
With an area of 103,000 square kilometers, Iceland is slightly smaller than the U.S. state of Kentucky.
4. Land Boundaries and Border Countries
Iceland, being an island nation, has no land boundaries with any other country.
5. Coastline (if applicable)
Iceland has a coastline of 4,970 kilometers, featuring numerous fjords, inlets, and peninsulas.
6. Maritime Claims
Iceland claims a territorial sea of 12 nautical miles, an exclusive economic zone of 200 nautical miles, and a continental shelf of 200 nautical miles or to the edge of the continental margin.
7. Climate
Iceland experiences a temperate oceanic climate, with cool summers and mild winters. The climate is moderated by the North Atlantic Current, resulting in milder temperatures than expected at such high latitudes.
8. Terrain
Iceland’s terrain is characterized by a combination of glaciers, mountains, and lava fields. Notable landscape features include the central highlands, the Mid-Atlantic Ridge, and numerous glaciers and volcanic systems.
9. Elevation Extremes
The highest point in Iceland is Hvannadalshnúkur, located in the Vatnajökull glacier, at an elevation of 2,110 meters. The lowest point is the Atlantic Ocean, at sea level.
10. Natural Resources
Iceland’s major natural resources include fish, hydropower, geothermal power, and diatomite.
11. Major Bodies of Water
Iceland has several significant bodies of water, including glacial rivers like Þjórsá and Ölfusá, and lakes such as Þingvallavatn, Þorisvatn, and Mývatn. These water bodies are not shared with other countries.
12. Natural Hazards
Iceland is prone to volcanic activity, with periodic eruptions from its numerous volcanoes. Other natural hazards include earthquakes, avalanches, and glacial outburst floods (jökulhlaups).
13. Geography – Notes
Iceland is known for its unique geological features, including geysers, hot springs, and active volcanoes. The country is also renowned for its breathtaking landscapes, including rugged coastlines, glaciers, and waterfalls. Iceland’s location along the Mid-Atlantic Ridge, where the North American and Eurasian tectonic plates meet, contributes to its high volcanic and seismic activity.
- Forest Area (% of land area): 0.50%. This is the percentage of a country’s total land area that is covered by natural or planted forests.
- Co2 Emissions: 2,065. CO2 emissions refer to the release of carbon dioxide gas into the atmosphere, primarily from the burning of fossil fuels (coal, oil, and natural gas) for energy production, transportation, and industrial processes.
- Agricultural Land( %). 18.70%. Agricultural land refers to the share of land area that is arable and used for cultivating crops or raising livestock.
- Geographic Coordinates: 64.963051-19.020835.
- Capital: The capital of Iceland is Reykjavík
- Major Cities:
- Reykjavik – Population: 128,793
- Kopavogur – Population: 36,801
- Hafnarfjordur – Population: 29,351
- Akureyri – Population: 18,925
- Selfoss – Population: 6,934
- Population: 361,313
- Area(Km2): 103
- Population Density( P/Km²):3. This is the number of people living per square kilometer of land area in a given region or country.
- Calling Code:354
- Official Language(s):Iceland is Icelandic – 100% spoken.
- Currency: ISK
Main Economic Indicators
Iceland has a small, modern economy with an estimated GDP of $26.7 billion in 2021. The economy relies heavily on fishing and aluminum exports, as well as tourism revenues. The government has implemented policies to diversify the economy by promoting technology, renewable energy, and biotechnology. Key economic challenges include mitigating the impact of the COVID-19 pandemic, managing inflationary pressures, and reducing external imbalances.
Inflation Rate (Consumer Prices)
Inflation rate (consumer prices): 6.8% (2021 est.), 2.8% (2020 est.)
Source: Central Bank of Iceland
Credit Ratings
Fitch: A (Stable)
Moody’s: A2 (Stable)
Standard & Poor’s: A (Stable)
GDP – Composition by Sector of Origin
Agriculture: 6.5%
Industry: 19.9%
Services: 73.6% (2017 est.)
Key Agricultural and Industrial Products
Agricultural Products: Milk, potatoes, livestock, fish
Industrial Products: Fish products, aluminum, ferro-silicon alloys, machinery, electronic equipment
Labor Force
Total Labor Force: 207,000 (2021 est.)
Ranking: Not Available
Current Account Balance
Current Account Balance: -$1.06 billion (2021 est.)
Ranking: Not Available
Exports and Imports
Exports: $6.19 billion (2021 est.)
Key Partners: Netherlands, Spain, Germany, United States, United Kingdom
Main Commodities: Fish, aluminum, tourism
Imports: $7.54 billion (2021 est.)
Key Partners: Germany, United States, Norway, Denmark, Netherlands
Main Commodities: Machinery and equipment, petroleum products, foodstuffs
Reserves of Foreign Exchange and Gold
Foreign Exchange Reserves: $10.31 billion (2021 est.)
Gold Reserves: 1.98 million ounces (2021 est.)
- GDP (Current US$):$24,188,035,739. It represents a country’s gross domestic product measured in current US dollars. Higher values indicate a larger economy and economic output.
- Tax Revenue (% of GDP): 23.30%. It refers to the amount of tax revenue collected by the government, expressed as a percentage of the country’s gross domestic product (GDP). Higher values indicate a higher tax burden relative to the size of the economy.
- Total Tax Rate (% of commercial profits): 31.90%. This is the sum of all taxes payable by businesses, expressed as a percentage of their commercial profits. Higher values indicate a higher tax burden on businesses.
- Gasoline Price. $1.69. It refers to the cost of one liter or gallon of gasoline/petrol. Higher values indicate more expensive gasoline prices for consumers and businesses.
- Minimum wage. . It refers to the lowest legally mandated hourly wage that employers must pay their workers. Higher values indicate a higher minimum level of pay for low-wage workers.
- Unemployment Rate (%): 2.84%. It represents the percentage of the labor force that is unemployed and actively seeking employment. Higher values indicate more joblessness in the economy.
Social Indicators
1. National Identity
Noun: Icelander(s)
Adjective: Icelandic
2. Ethnic Groups
• Icelandic 92.7%
• Other 7.3%
3. Religions
• Protestant 64.1%
• No religion 38.5%
• Other 7.4%
4. Age Structure
• 0-14 years: 20.06%
• 15-64 years: 64.12%
• 65 years and over: 15.82%
5. Dependency Ratios
Total: 55.8%
Youth: 31.3%
Elderly: 24.5%
6. Median Age
Total: 37.8 years
Male: 37.2 years
Female: 38.4 years
7. Lifestyle Indicators
• Obesity rate: 26.1%
• Alcohol consumption: 7.7 liters per capita
• Smoking prevalence: 11.8%
- Life Expectancy at Birth: 82.7. Life Expectancy at Birth refers to the estimated average number of years a newborn is expected to live based on current mortality rates. Higher values indicate better health outcomes and living conditions in a country or region.
- Literacy Rate (% of adults): 99.9%. It refers to the percentage of the population aged 15 and above who can read and write with understanding of a short simple statement about their everyday life. Higher literacy rates indicate better educational attainment within a population.
- Birth Rate:12. Birth Rate is the total number of live births per 1,000 population in a given year. Higher birth rates indicate a larger share of the population being born each year.
- Death Rate:6. Death Rate is the number of deaths per 1,000 population in a given year. Higher death rates indicate more people dying annually within a population.
- Fertility Rate: 1.71. Fertility Rate is the average number of children a woman would have over her reproductive years based on current birth rates. Higher fertility rates indicate larger family sizes and population growth.
- Internet Users (% of population): 99,9%. Internet Users (% of population) refers to the percentage of the total population in a country or region that has access to and uses the internet. Higher values indicate greater internet penetration and connectivity among the population.
- Urban Population: 339,11. Urban Population refers to the percentage or number of people living in urban areas or cities within a country or region. Higher urban population values indicate greater urbanization and concentration of people in cities compared to rural areas.
- Out of Pocket Health Expenditure (% of total health expenditure):17.00%. Out of Pocket Health Expenditure (% of total health expenditure) represents the portion of total health care costs that individuals pay directly out of their own pockets, rather than being covered by insurance or government programs. Higher values indicate greater personal financial burden for health care expenses.
Infrastructure and Services
Military and Security Forces
Iceland does not have a standing military force. The Icelandic National Police is responsible for maintaining internal security and law enforcement. The country also has a Coast Guard to patrol its territorial waters and exclusive economic zone.
Military Expenditures
Iceland’s military expenditure as a percentage of GDP for the last five years:
- 2022: 0.11%
- 2021: 0.12%
- 2020: 0.13%
- 2019: 0.12%
- 2018: 0.12%
Iceland’s military spending ranks among the lowest globally.
Personnel Strengths
Iceland does not have active-duty military personnel.
The strength of the Icelandic National Police is approximately 800 officers.
The Icelandic Coast Guard has a personnel strength of around 300.
Military Equipment Inventories and Acquisitions
Iceland does not possess conventional military hardware or equipment.
The Icelandic Coast Guard operates a small fleet of patrol vessels, aircraft, and helicopters for maritime surveillance and search and rescue operations.
Military Service Age and Obligation
Iceland does not have a mandatory military service requirement.
Military Deployments
Iceland does not have any overseas military deployments.
The country contributes to international peacekeeping missions through the deployment of civilian crisis management personnel, primarily police officers.
Strategic Military Notes
As a member of NATO, Iceland’s security is guaranteed by the collective defense commitment of the alliance. However, the country does not maintain its own military forces.
Iceland relies on its longstanding partnership with the United States for security cooperation and the periodic deployment of U.S. military assets to the island for training and exercises.
The Icelandic Coast Guard plays a vital role in maritime safety and security, including search and rescue operations, fisheries enforcement, and environmental protection in the country’s territorial waters and exclusive economic zone.
- Armed Forces Size: 0. Armed Forces Size refers to the total number of active personnel serving in a country’s military forces, including the army, navy, air force, and other branches. Higher values indicate a larger military presence and personnel.
- Physicians per Thousand: Number of doctors per 1,000 people is 04.08
- Population: Labor Force Participation (%): 75.00%. This is the percentage of the total population aged 15 and older that is economically active, meaning they are either employed or actively seeking employment. Higher values indicate a greater proportion of the working-age population engaged in the labor force.