Iceland flag

Iceland

Capital

Reykjavik

Region

Europe

Population

391,810

Area (km²)

103,000

💡Quick Summary

Iceland, a Nordic island nation in Europe with a population of about 392,000, spans 103,000 km² and boasts Reykjavik as its vibrant capital, blending modern culture with stunning natural landscapes. Renowned for its geothermal energy, volcanoes, and glaciers, it's a leader in renewable resources and offers a high quality of life amid dramatic scenery. Despite its small size, Iceland punches above its weight in global affairs, from environmental policies to creative industries like music and literature.

Key Insights

Minimal Forest Cover

Iceland has one of the lowest forest area percentages globally (0.529%), which is a unique characteristic for a developed European nation. This lack of natural forest cover is primarily due to historical deforestation and the island's harsh volcanic and subarctic environment, contrasting sharply with the high forestation rates often seen in Nordic neighbors.

Highly Urbanized Island Nation

Despite its large land area and small total population, Iceland is highly urbanized, with over 94% of its residents living in urban areas. This concentration is likely due to the limited habitable land and the centralization of economic activity and services in coastal areas, particularly around the capital, Reykjavik.

Low Unemployment Paired with High Growth

The economy is experiencing robust growth (5.186%) while maintaining an extremely low unemployment rate (3.518%). This combination suggests the economy is operating at or near full capacity, which further supports the high GDP per capita but also contributes to the high inflationary pressures.

Exceptional Health Outcomes: Lowest Infant Mortality

Iceland boasts an extraordinarily low infant mortality rate (1.900 per 1,000 live births), placing it among the world leaders in child health. This achievement is supported by a high life expectancy (82.61 years) and significant public investment in health (8.992% of GDP), reflecting a highly effective healthcare system.

Economic Indicators
Latest economic data from World Bank

GDP (Current US$)

$31.68B

Year: 2023

GDP Per Capita

$82,138.79

GDP Growth (%)

5.19%

Inflation (%)

8.74%

Unemployment (%)

3.52%

Debt to GDP (%)

80.16%

Source: World Bank • Last updated: 12/24/2025

Historical Trends & Data Visualizations

GDP Growth Rate
Annual percentage change in GDP over time
2014201520162017201820192020202120222023-10.00%-5.00%0.00%5.00%10.00%
  • GDP Growth (%)
Population Growth
Total population over time
20142015201620172018201920202021202220230100,000200,000300,000400,000
  • Population
Life Expectancy
Average life expectancy at birth (years)
20142015201620172018201920202021202220230.0years25.0years50.0years75.0years100.0years
  • Life Expectancy (years)
Renewable Energy Consumption
Percentage of total energy from renewable sources
201420152016201720182019202020210.0%25.0%50.0%75.0%100.0%
  • Renewable Energy (%)
GDP Per Capita
Economic output per person (current US$)
2014201520162017201820192020202120222023$0$25,000$50,000$75,000$100,000
  • GDP Per Capita ($)

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