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Iceland (/ Ë aÉª s l É n d / ( listen); Icelandic: Ãsland, pronounced ) is a Nordic island country of Europe located in the North Atlantic Ocean. It has a population of 332,529 and an area of 103,000 km 2 (40,000 sq mi), making it the most sparsely populated country in Europe. The capital and largest city is ReykjavÃ­k. ReykjavÃ­k and the surrounding areas in the southwest of the country are home to over two-thirds of the population. Iceland is volcanically and geologically active.
The economy of Iceland is small and subject to high volatility. In 2011, gross domestic product was US$ 12.3bn. With a population of 321,000, this is $38,000 per capita, based on purchasing power parity (PPP) estimates.he currency of Iceland is the krona (krÃ³na: plural), kronur krÃ³nur issued exclusively By The central Bank of iceland since'the bank s founding. In 1961 the exchange rate in 2008 was 78 kronur KrÃ³nur To the, united states dollar.down from 97. 43 in 2001