According to a government press release, the Social Democrats and the LRP each hold four ministerial portfolios, while the PP has taken three.

Besides the SDA, the three-party coalition also includes the Liberal Reform Party (LRP), and the People's Party (PP), Xinhua news agency reported.

Frostadottir, born in 1988, is the country's youngest prime minister. She was elected to parliament in 2021 and became the SDA leader the following year.

She served as the main economist for the Icelandic Chamber of Commerce in 2017, and in 2018, she became the main economist for the Kvika Bank. She served until 2021, when she applied to be on the Social Democratic Alliance list in the Reykjavik South constituency.

She sought the leadership of the Social Democratic Alliance in 2022, and was uncontested.

The new cabinet convened its first formal meeting on Saturday afternoon at presidential residence Bessastadir, with President Halla Tomasdottir in attendance.

At a press conference earlier that day, Frostadottir outlined the new cabinet's prioritises, which include stabilising the Icelandic economy by reducing interest rates, implementing stricter controls on public finances, and promoting increased value creation.

In the new government, LRP leader Thorgerdur Katrin Gunnarsdottir serves as the Minister of Foreign Affairs, and PP leader Inga Saland leads the newly-established Ministry of Social Affairs and Housing.

Iceland's parliamentary election taking place on November 30 distributed 63 seats among six parties. The SDA emerged as the biggest winner, gaining 15 seats; the LRP gained 11 seats, while the PP secured 10.

Courtesy Media Group: IANS