Map of Iceland

Iceland  Icelandic: Ísland [ˈistlant]) is a Nordic island nation between the North Atlantic and the Arctic Ocean. It has a population of 325,671 and an area of 103,000 km² (40,000 sq mi), making it the most sparsely populated country in Europe. The capital and largest city is Reykjavík; the surrounding areas in the southwest of the country are home to two-thirds of the population. Iceland is volcanically and geologically active. The interior consists mainly of a plateau characterised by sand and lava fields, mountains and glaciers, while many glacial rivers flow to the sea through the lowlands. Iceland is warmed by theGulf Stream and has a temperate climate despite a high latitude just outside the Arctic Circle.

According to Landnámabók, the settlement of Iceland began in 874 CE when the Norwegian chieftain Ingólfr Arnarson became the first permanent settler on the island. In the following centuries, Scandinavians settled Iceland, bringing with them thralls ofGaelic origin. From 1262 to 1918, Iceland was ruled by Norway and later Denmark. The country became independent in 1918 and a republic in 1944.

Until the 20th century, Iceland relied largely on fishing and agriculture. Industrialisation of the fisheries and Marshall Plan aid following World War II brought prosperity and Iceland became one of the wealthiest and most developed nations in the world. In 1994, Iceland became party to the European Economic Area, which supported diversification into economic and financial services.