In 2007, the population in Iceland increased from 307,672 to 313,376 individuals. The population growth was 1.9% in 2007 compared to 2.6% in 2006. For the past three years, population increase in Iceland has been high compared with other European countries. The average population increase in Europe has been around 0.2%, with only a few countries exceeding the level of 1%.

The steep increase in population in Iceland has mainly been due to increased immigration for the past few years. In 2007, net immigration was 1%, compared with 1.8% in 2006 and 1.3% in 2005. Natural increase in the year 2007 was 0.8%. Up to the year 2005, natural increase was generally higher than net immigration. Since 2005, net immigration has been higher than natural increase.

Population increased in all regions with the exception of the West Fjords (Vestfirðir) and the East (Austurland). As in previous years, the highest population increase was in the Southwest (Suðurnes), 8.1% in 2007. The population of the capital area increased by 2.4%, which is the same proportion as last year. In the West Fjords the population decreased by 2.2%. The population in the East decreased the most between years, or by 9.4%. In 2006, the population in the East increased by 12.2%. On average the population of the East increased by 3.7% annually between 2002 and 2007.

Statistics
  Municipalities
  Urban nuclei