Iceland

Iceland lies in the North Atlantic, just south of the Arctic Circle. Its capital, Reykjavík, is on the southwestern coast. The island lies over the Mid-Atlantic Ridge, where the North American and Eurasian plates spread apart. This geological setting helps shape a landscape of lava fields, volcanic mountains, glaciers, hot springs and other geothermal features. The combination of ice and volcanic activity is a defining feature of its physical geography.

The surrounding ocean and currents influence Iceland's maritime climate. Glaciers cover a significant part of the interior, while settlements cluster along the coast and around the capital region. Geothermal heat is used in homes and other settings, and renewable energy supplies the majority of the country's energy needs, according to Nordic cooperation's country profile.

Norse settlers, primarily from Norway, began arriving in Iceland during the Viking Age; the early population also included people of Celtic origin. In 930, settlers established Alþingi (the Althing), a national assembly whose institutional history remains central to Iceland's political identity. Iceland later came under the Norwegian and Danish crowns. In 1918 it became a separate state under the Danish crown, and in 1944 it ended that connection and established a republic.

Iceland is a multiparty constitutional republic. The president is head of state, while executive power is exercised by the government. Alþingi is the national parliament; it has 63 elected representatives. Iceland is not a member of the European Union, but it participates in the European Economic Area and is a member of NATO. These arrangements connect the country to regional economic cooperation and collective security while it remains outside the EU.

Statistics Iceland counted 396,500 residents at the end of the second quarter of 2026; 253,230 lived in the Capital Region. Icelandic is the country's official language and developed from Old Norse. Medieval Icelandic sagas are a notable part of its literary heritage and preserve narratives associated with the settlement era.

Fishing and fish processing have long shaped Iceland's economy and coastal communities. The economy is now more diversified, including tourism, aluminum and ferrosilicon exports, and activities such as software and biotechnology. The country's geothermal and hydropower resources also underpin its extensive use of renewable energy.