The population of Iceland is estimated to reach nearly 500,000 by the year 2061, while at the same time, the population will grow older.
The forecast, made by Statistics Iceland, actually shows three forecasts – conservative, liberal, and the mean. By conservative estimates, the population of Iceland will reach 393,000 by 2061; by liberal estimates, 498,000; and by the mean, 436,000.
This prediction is based on noticeable trends in immigration. It is believed that foreigners will continue to move to Iceland and, provided there are no dramatic shifts in immigration, will contribute significantly to the population of the country. At the same time, it is believed that just as many Icelanders will move out of the country than will move back home, thus having little effect on the population.
The demographics of the country will also change over the coming decades. The number of Icelanders aged 65 and older will increase, while the number of young people will decline. This may have an effect on the social system of the country, with fewer taxpayers paying into the treasury while the number of pensioners increase.
The full report can be read here (.pdf file in Icelandic).