Iceland is a European country.
Iceland . Until the 20th century , Iceland relied largely on subsistence fishing and agriculture , and was among the poorest in Europe . In 1994 , it became a part of the European Economic Area , which further diversified the economy into sectors such as finance , biotechnology , and manufacturing . The Nordic countries or Nordics are a geographical and cultural region in Northern Europe and the North Atlantic , where they are most commonly known as Norden ( lit. : The North ) .