Most Icelanders are descendants of Norwegian settlers and Celts from the British Isles, and the population is remarkably homogeneous. According to Icelandic Government statistics, 94% of the nation's inhabitants live in urban areas (localities with populations greater than 200) and about 63% live in the Reykjavík metropolitan area. Of the Nordic languages, the Icelandic language is closest to the Old Norse language and has remained relatively unchanged since the 12th century. About 84% of the population belongs to the state church, the Evangelical Lutheran Church, or other Lutheran Churches. However, Iceland has complete religious freedom, and about 20 other religious congregations are present.

Most Icelandic surnames are based on patronymy, or the adoption of the father's first given name. For example, Magnús and Anna, children of a man named Pétur, would hold the surname Pétursson and Pétursdóttir, respectively. Magnús' children, in turn, would inherit the surname Magnússon, while Anna's children would claim their father's first given name as their surname. Women normally maintain their original surnames after marriage. This system of surnames is required by law, except for the descendants of those who had acquired family names before 1913. Most Icelanders, while reserved by nature, rarely call each other by their surnames, and even phone directories are based on first names. Because of its small size and relative homogeneity, Iceland holds all the characteristics of a very close-knit society

Cultural Achievements

The Sagas, almost all written between 1180 and 1300 A.D., remain Iceland's best-known literary accomplishment, and they have no surviving counterpart anywhere in the Nordic world. Based on Norwegian and Icelandic histories and genealogies, the Sagas present views of Nordic life and times up to 1100 A.D. The Saga writers sought to record their heroes' great achievements and to glorify the virtues of courage, pride, and honor, focusing in the later Sagas on early Icelandic settlers. The best-known Icelandic writer of the 20th century is the 1955 Nobel Prize winner Halldór Kiljan Laxness. The literacy rate is 99.9%, and literature and poetry are legendary passions with the population. Per capita publication of books and magazines is the highest in the world.

Unlike its literature, Iceland's fine arts did not flourish until the 19th century because the population was small and scattered. Iceland's most famous painters are Ásgrímur Jónsson, Jón Stefánsson, and Jóhannes Kjarval, all of whom worked during the first half of the 20th century. The best-known modern sculptor, Ásmundur Sveinsson (1893-1982), drew his inspiration from Icelandic folklore and the Sagas for many of his works. Today, Kristján Jóhannsson and Garðar Thór Cortes are Iceland's most famous opera singers, while pop singer Björk and progressive rock band Sigur Rós are well known internationally.

Nationality: Noun--Icelander(s). Adjective--Icelandic.
Population (October 1, 2009): 318,906.
Annual growth rate (2008): 1.3%.
Ethnic group: Relatively homogenous mixture of descendants of Norwegians and Celts.
Religion: Evangelical Lutheran, 84.2%.
Language: Icelandic.
Education: Compulsory up to age 16. Attendance--99%. Literacy--99.9%.
Health: Infant mortality rate (1999-2008 average)--2.4/1,000. Life expectancy (2008)--men 79.6 years, women 83.0 years.
Work force (2008, 184,100): Commerce--32.2%; manufacturing--8.2%; fishing/fish processing--3.4%; construction--10.05%; transport and communications--6.3%; agriculture--2.3%; government, education, and health--27.2%; other services--9.55%. Unemployment (October 2009): 7.6%.