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Making the world better, one answer at a time. Iceland is continually growing because of volcanic activity. As the lava erupts and runs into the sea, it cools and becomes solid land.
This Nordic island nation is located between the Arctic and North Atlantic Oceans. Iceland has an estimated population of 338,800 in 2015, which ranks 175th in the world. Overall, Iceland has a surface area of 103,001 square kilometres (39,770 square miles) and it is the 108th largest in this respect. However, that harsh geographical landscape is one of the reasons why it's population remains so low. Iceland has the lowest population density of all European countries at just 3 people per kilometer (8/square mile). The capital and largest city of Iceland is Reykjavik, which is also the northernmost capital in the world and a major tourist destination. Reykjavik has a population of about 120,000 or 200,00c0 if the larger Capital Region is included.