Iceland is an island nation located northwest of Europe, in the middle of the Atlantic Ocean, not far from Greenland. The origin of the name is associated with a harsh and cold climate. In literal translation, it is called the country of ice or the ice country. Iceland is an island with an area of 103, 000 km 2, along with small islands around it.
The capital of the state is the city of Reykjavik. 202 thousand people live in it. Cities in Iceland are clean, tidy, and respectable. Among the largest - Koupavogur, Habnarfjordur, Akureyri. There are community cities and municipalities, port cities: Gardabayr, Akranes, Selfoss, Grindavik, Siglyufjordur, Torlaukshebn and others.
The history of Iceland began in the 9th century. There are very few resources on the island. Nevertheless, the UN proclaimed Iceland the most comfortable country for life. The economy in this state is well developed, although it has its drawbacks. The standard of living in Iceland is high, and the distribution of income is even. Crises rarely occur.
Natural conditions
Despite the signs of glaciation, the climate here is milder than the average at these latitudes. This is due to its oceanic nature. It is classified as a moderately cool marine type. It is humid, windy, and the weather is very changeable. There is no sea glaciation on the island.
In general, the natural conditions of Iceland are rather unfavorable. The bare lifeless spaces or the semblance of the tundra predominate. Sheep grazing contributes to this. Previously, forests were actively cut down, after which they were almost not restored. Naturally, all this has a negative impact on the development of the economy of this island nation.
The population of Iceland is 353, 070 people, and its density is 3.1 people / km 2. The country's GDP is $ 23 billion, and per capita GDP is $ 70.3 thousand.
Transport
There are no railways on the island. Transport communication is carried out by road, sea and air transport. Road transport is represented by buses, cars and trucks. The most practical type of vehicle in this country is a car. This is due to the low density of the transport network and the sparseness of the population.
Economy
The economy of Iceland is very well thought out and well developed. It is based on the Scandinavian model and perfectly suits the realities of the modern world. The country is characterized by rapid economic growth, an even distribution of income and low unemployment. In recent years, tourism has been actively developing in the country, which leads to the diversification of the economy of Iceland and its further growth.
Although the crisis of 2008-2009 had a great negative impact on the country's economy, already in 2010 there was a restoration of many indicators. In 2013, gross domestic product reached the pre-crisis level.
In 2017, Iceland's total GDP amounted to $ 16.8 billion, and per person - $ 67.5 thousand (nominal).
At the same time, Iceland has the largest external public debt in the world (699% of GDP in 2012).
Financial activities
Active development of the country's financial system began in the late 90s of the 20th century. Despite the fact that the basis of the local economy is fishing, Iceland has managed to become one of the leaders in the field of financial activity in Europe. This led to the stimulation of economic growth, increased incomes of the population, but at the same time increased the country's dependence on world currency fluctuations. That is why the crisis of 2008 so severely affected the situation in this island nation.
Iceland Industry
There are practically no natural resources in the country, the basis of the economy is fishing and processing of fish. In the total export, fish products account for 63 percent, and 1.3 million tons are caught per year. Ecological standards while fishing are getting tougher. The country is interested in preserving its natural resources. There are quotas for catch, prohibitions on certain types of fishing. A total or partial ban on fishing may be introduced in some areas.
Important types of fish for industrial fishing are cod and herring. And due to the reduction in stocks, capelin and pollock were also caught.
In addition to fishing, the country is engaged in the smelting of aluminum based on imported raw materials. In addition, shoes, metal products, furniture, electrical equipment, building materials, clothes are produced here. Near Reykjavik they produce mineral fertilizers. There is also a cement plant and a plant for the production of an alloy of iron and silicon. Widespread production of metal sheets.
Electric energy is produced from renewable sources (geothermal and hydropower). Oil is supplied from Norway and the UK. It is required for the operation of the fishing fleet.
Agriculture in Iceland
The country is dominated by farming represented by livestock. Once the island was covered with birch forests, but gradually they were destroyed, and in their place various kinds of wastelands formed. Now sheep are bred there, which are the main species of pets in Iceland.
In the 19th century, 70-80 percent of the inhabitants of the island were involved in agriculture. However, in the 21st century this share is only 5%. Cattle grazing fully covers the country's needs for meat and milk.
In 2006, there were 4, 500 farms (mostly private). In 2008, there were 460 thousand sheep, 130 thousand heads of cattle, 75 thousand horses, 200 thousand hens, 4, 000 pigs and 500 goats.
As for the cultivation of crops, this direction is poorly developed. Only 1% of the total territory of the country are cultivated fields. These are usually low-lying areas. Grow vegetables, flowers. Fruits and vegetables are grown in greenhouses based on geothermal energy.
All this allows you to get here products such as potatoes, cauliflower, carrots, cabbage, rhubarb, rutabaga, leek, kale, and more recently, also rape and barley.
Recently, attempts have been made to grow crops. The climate on the planet is getting warmer and the opportunities for agricultural development are expanding. On a limited scale, wheat, barley, and rapeseed were grown. Over the past two decades, wheat harvest has increased more than 20 times and reached 11, 000 tons.
Another important feature of Iceland's agriculture is its environmental friendliness. In conditions of a cool and cold climate and sparse vegetation, crops have no pests. So, there is no need to use pesticides. There are also no harmful industries, and the population density is very low. The air coming from the ocean is pretty clean.
Prospects for agricultural development are associated with projected GDP growth and lower inflation.
Economic ties with Russia
In 2005, trade between the two countries amounted to $ 55 million. Iceland exported fish to us, its processed products, as well as industrial products. Russia sent oil, oil products, lumber, and metal to Iceland. Negotiations are ongoing on cooperation between the two countries in the field of aluminum production.
There were problems at the same time. Both countries claim the same fish resources in the Barents Sea, which in the past became a cause of disagreement. This concerns the catch of cod.
