Reykjavík, capital of Iceland
Friday, 4 November 2011 - 02:53 pm (CET/MEZ) Berlin | Author/Destination: European Free Trade AssociationCategory/Kategorie: General, European Union, European Capital of Culture Reading Time: 4 minutes Reykjavík is the capital and largest city of Iceland. Its latitude at 64°08′ N makes it the world’s northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay. With a population of around 120,000 (and over 200,000 in the Greater Reykjavík Area) it is the heart of Iceland’s economic, cultural and governmental activities.
Reykjavík is believed to be the location of the first permanent settlement in Iceland, which Ingólfur Arnarson is said to have established around 870. Until the 18th century, there was no urban development in the city location. The city was founded in 1786 as an official trading town and grew steadily over the next decades, as it transformed into a regional and later national centre of commerce, population and governmental activities.
In the post-war years, the growth of Reykjavík accelerated. A mass exodus from the rural countryside began, largely due to improved technology in agriculture that reduced the need for manpower, and because of the population boom resulting from better living conditions in the country. A once primitive village was rapidly transformed into a modern city. Private cars became common and modern apartment complexes rose in the expanding suburbs. Much of Reykjavík lost its village feel. In 1972, Reykjavík hosted the world chess championship between Bobby Fischer and Boris Spassky.
Borgartún is the financial centre of Reykjavík, hosting a large number of companies and three investment banks. Reykjavík has been at the centre of Iceland’s economic growth and subsequent economic contraction over the last decade, a period referred to as the “Nordic Tiger Years” or “Iceland’s Boom Years”. The economic boom led to a sharp increase in construction, with large redevelopment projects such as Harpa concert hall and conference centre, Smáratorg and others.
Volcanic activity in Iceland provides Reykjavík with geothermal heating systems for both residential and industrial districts. In 2008, natural hot water was used to heat roughly 90% of all buildings in Iceland. With total use of geothermal energy being at 39 PJ, space heating accounted for 48%.
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