By the end of 2025, Iceland's population had reached approximately 394,530, just shy of the 400,000 mark anticipated by the statistics office. The population increased by 1,370 in the final quarter of the year, highlighting a continuous growth trend. Within this demographic landscape, foreign nationals represent a significant portion, accounting for 17.8% of the total population, equating to around 70,420 individuals who enhance the cultural and societal fabric of Iceland.

The recent statistics underscore a notable gender disparity as well, with approximately ten thousand more men than women residing in the country—202,220 men compared to 192,090 women, alongside 210 individuals identifying as non-binary. This gender imbalance, combined with the growing foreign population, may have implications for various social services and job markets, calling for adaptive strategies to accommodate a diverse community.

Most of Iceland's inhabitants, over 252,000, live in the Reykjavik metropolitan area, while more than 142,000 are found in the rural regions. In contrast to the 389,450 total population recorded the previous year, the growth reflects a vibrant and evolving demographic, paving the way for new challenges and opportunities within Iceland's societal framework as it inches closer to that 400,000 milestone.