Record Population Increase in Iceland Skip to content

Record Population Increase in Iceland

By Yelena

pedestrian street Laugavegur Reykjavík
Photo: Reykjavíkurborg. Pedestrian street Laugavegur in the centre of Reykjavík on a busy summer day.

Iceland’s population increased by 3.1% between January 2022 and January 2023: the largest increase since 1734 or as far back as population figures for Iceland go. The population was 387,758 on January 1 of this year, and had increased by 11,510 from last year, according to the latest figures from Statistics Iceland. Population increase was proportionally greatest in the southwest.

Proportionally greatest population increase in the Southwest

The population in the Reykjavík capital area increased by 2.8% between the start of 2022 and the start of 2023 or an increase of 6,651 residents. The southwest region showed the highest proportional increase in population, at 6.7%, or 1,941 residents. The population increase was 4.2% in South Iceland and 3.1% in West Iceland, which was above the country’s average. The population growth was proportionally lower in the Westfjords (2.4%), Northeast Iceland (2.0%) and East Iceland (1.8%). The smallest increase was in the Northwest, where the number increased by only 27 individuals or 0.4%.

Population decreased in 8 of 64 municipalities

There were 64 municipalities in Iceland on 1 January 2023, which is a decrease by five, due to merger. The municipalities are diverse in size of population. Reykjavík was the most populous with 139,875 inhabitants while Árneshreppur had the smallest population of 47 inhabitants. Twenty-nine municipalities had less than 1,000 inhabitants, but only eleven had 5,000 inhabitants or more. While the country’s overall population increased, the population decreased in eight of the country’s 64 municipalities.

Nearly two thirds of the population live in the capital area

About 63% of the population lived in the Reykjavík capital area at the start of this year, that is within the connected municipalities stretching from Hafnarfjörður to Mosfellsbær. This is a total of 242,995 people of the total population of 387,758. The second largest urban area in the country was Keflavík and Njarðvík, with 21,950 inhabitants. Akureyri, North Iceland and the surrounding area come in third at 19,887 inhabitants. Inhabitants in all of Iceland’s rural areas, defined as the countryside or localities with less than 200 inhabitants, totalled 22,752 individuals or 5.9% of the total population.

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