Capital
Reykjavik
Region
Europe
Population
391,810
Area (km²)
103,000
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.
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.
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.
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.
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.
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
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