Iceland is some 105'000 km2 and has a population of 330'000. during the year over a million people come to this country. the peak in summer is one reason to avoid this period of time. Icelanders are very friendly people and they give away everything to help and assist - but not in the high season, tourists or so called 'utlendigar' are here to pay - what else.
Iceland can be divided into the following main areas
- Reykjanes peninsula and Reykjavik
- South coast from Selfoss to Höfn
- East coast from höfn to Vopnafjördur
- North area from Vopnafjördur to Blönduos
- West Fjords and Snaefelsness
My favorite is clearly the North area, Icelandic people prefer Reykjanes where city life takes place and slowly but steadily american style and comfort comes to this once very poor country. There is a huge movement from all regions of Iceland to the Rekjanes area resulting in high prices for housing and land in this area. On the other hand villages in the North and West loose inhabitants and also value.
Economically the land was in a high-performance bubble until end of 2005. then some warnings about the overheated economical system came up and this dropped the krona and the stock exchange index by more than 20%. However the krona and the stock prices recovered very well and many people made a lot of money. In autumn 2007 the stocks fell dramatically and in spring 2008 the krona dropped by around 30%. then after further problems of the financial markets the government had to take over control of the three main icelandic banks. It was taking some while until this situation was normalized.
Late 2010 some markets in iceland recover very well - especially export oriented businesses while as others still are in big trouble. In 2011 economy was recovering slowly and especially construction industry started seeing a small light at the end of the tunnel. Since 2013 Iceland was fully recovering from the crisis and is now heading full speed into the same situation as before 2008. Everybody is spending money one does not have...
It is only a question of time, when the next bubble bursts.