Egilsstaðir has grown to become the largest town of east Iceland and its main service, transportation and administration center. The town has an airport, college and a hospital. The town grew quickly during the economic boom in the region from 2004-2008 associated with the building of the Kárahnjúkar Hydro power Project and Alcoa's aluminium smelting plant in Reyðarfjörður. The growth has slowed markedly since the banking collapse in 2008
