iceland

welcome to iceland

orientation on the floor of the keflavik airport

about iceland

iceland is some 105'000 km2 and has a population of 330'000. during the summer season another 400'000+ come to this country and this 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
- highlands

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 gouvernment had to take over control of the three main icelandic banks. it will take some while until this situation will recover as it is dependent from other economies and it's not only an 'icelandic' problem.

late 2010 some markets in iceland recover very well - especially export oriented businesses whileas others still are in big trouble. in 2011 economy is recovering slowly and especially construction industry is seeing a small light at the end of the tunnel. all are hoping that world economy is not stumbling right now. 2013 it looks pretty well and iceland is recovering from the crisis - hopefully not too fast....

 

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