It has a population of 325,671 and an area of 103,000 km2 (40,000 sq mi), making it the most sparsely populated country in Europe.[7] The capital and largest city is Reykjavík; the surrounding areas in the southwest of the country are home to two-thirds of the population. Iceland is volcanically and geologically active. The interior consists mainly of a plateau characterised by sand and lava fields, mountains and glaciers, while many glacial rivers flow to the sea through the lowlands. Iceland is warmed by the Gulf Stream and has a temperate climate despite a high latitude just outside the Arctic Circle.