The capital and largest city is Reykjavík, with the surrounding area being home to almost two-thirds of the population. Iceland is warmed by the Gulf Stream and has a temperate climate despite a high latitude just outside the Arctic Circle.
The capital and largest city is Reykjavík, with the surrounding area being home to almost two-thirds of the population. Iceland is warmed by the Gulf Stream and has a temperate climate despite a high latitude just outside the Arctic Circle.
In recent years Iceland enjoyed a standard of living that was among the highest in the world. Its prosperity initially rested on the fishing industry, but with the gradual contraction of this sector the Icelandic economy developed into new areas. By the beginning of the 21st century, Iceland had come to epitomise the global credit boom. Its banks expanded dramatically overseas and foreign money poured into the country, fuelling exceptional growth.
Iceland is an island of volcanoes and is very geologically active. The interior consists of a plateau characterised by sand fields, mountains and glaciers. with many rivers, waterfalls and lakes.
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