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Iceland isl?nds a Nordic country between the North Atlantic and the Arctic Ocean. It has a population of 325,671 and an area of 103,000km2 , making it the most sparsely populated country in Europe. The capital and largest city is Reykjavk; the surrounding areas in the South-West 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 the Gulf Stream and has a temperate climate despite a high latitude just outside the Arctic Circle.