Icelandish!

Expat woman Student Globe-trotter

Random musings of a "Viking Wife" about trying to assimilate in Iceland and attempting to get by on limited language skills.

Tags: Icelandic, Reykjavik, expat, immigrant, travels

The author

jrbowe

I'm an American expat who left behind a career and the sunshine of California to move to Iceland with my Icelandic spouse. We relocated to our new home in 2008 just mere months before the "Kreppa" happened (Icelandic term for "crisis/depression"). I blog about the travails of life as an expat in this strange country with its strange language and volatile economy. Come visit me online!

Comments

What is the economy like. Here is Seattle Wa, nothing is being said or reported on life in Iceland after the crash.... I see lots of protests... Is there deflation or inflation going on? Here in Seattle we are watching US fall apart like Iceland's economy did. I was hoping to get some insight of how the crash actually changed the experience of going to the store, getting Gas, things that we wouldn't think of not having available because we can't get goods due to lack of company's not being able to get the loans required to receive the good. Want to email me with details and I will let you know what is happening here.. The news is suppressing the real stuff, like what is happening in Iceland.... Ang
by angilina on 22/01/2009 at 05:54:04

Hi Nikka and Angilina, Unfortunately your email addresses are not publicized to me so I cannot email you back directly. The best I can do is try to answer some of your questions in my blog posts on Icelandish. Or if you leave comments directly in my blog, then it is easier to respond to you. There is a lot of anxiety and apprehension here at the moment due to the recent collapse of the government and the ongoing worsening economic outlook. Unlike in the US, Iceland doesn't have its own 'Obama' superstar to take over the government. As of Jan. 27 2009, we still don't know who will be the Prime Minister until the special May elections. There really is something new everyday in the news! The best sources for English-news about Iceland is Iceland Review, IceNews, or The Iceland Weather Report (which is an exquisitely written blog on daily/political happenings) As for average Icelanders, the situation is likely similar to common Americans who are feeling the pinch. We have had quite a bit of inflation in food and other basic goods. (However, contrary to international media reports, we do have plenty of food in our stores!) Alchohol has also gone up at least 5%. Because the currency has fallen against the Euro & USD, it is now more expensive to import goods...and unfortunately living on an isolated island means almost everything is imported! Also similar to the US, the average sale prices of homes are falling. However, the market is currently very good for renters, as many foreigners have moved out of the country or young people have moved back in with their families. There are currently around 1000~ rental units on the market in the Reykjavik area whereas last year at this time there were probably only around 200. Furthermore, the average rent prices have dropped almost to the level of public assistance housing. Many landlords are desperate to rent their units, most likely to pay mortgages, so in some cases the rent prices have dropped 20% or more. (Iceland tends to be a homeowner society so its rare to have so many units vacant). Housing and car sales have ground to a halt in Iceland. In fact, wealthy Norwegians are now purchasing cars from Iceland in bulk to resell in Norway due to the favorable currency exchange. Many Icelanders that do have car or home loans are in a lot of trouble because back around 2007 it was popular to take out loans in a foreign currency. The problem now is that due to the crash of value of the Icelandic Krona, many peoples' loans have now doubled. There may be legislation in Parliament to help these people, but it may not come soon enough with the political turmoil! We are also, of course, very worried about jobs here. The unemployment rate is hovering around 5 or 6% here which is actually quite bad considering it was less than 1% in Dec. 2007. It is now much more difficult to be a foreigner here. Before, there were many jobs for foreigners and it wasn't a problem if you didn't speak Icelandic (since English is widely spoken here). However, many employers (even for low wage jobs) now require Icelandic speaking ability. In fact, of all the layoffs since October, foreigners have been disproportionately affected. Several thousand foreigners have already left Iceland to find work back home. As for the young people of Iceland, they are keen to get out of the country or at least go back to school to kill time for a few years. Attending University of Iceland is very cheap (45,000 ISK per year ~ around $450) As for government funding, some things have had to be cut. There have been a few hospitals closed and fees for doctors visits have gone up beginning in Jan. 2009. Also, many infrastructure projects are on hold. I'm not sure if income taxes or sales taxes will go up, but it is likely in the near future to be able to compensate for the IMF loans. Overall, people are still trying to live their lives here despite all the crap that is happening. People may be shopping less, but going to coffee shops and bars and dinner parties are still popular. If you would like to know more, feel free to get in contact with me via my blogsite ;') --Jessica
by jrbowe on 27/01/2009 at 17:25:50

Hi Jessica- I was wondering if you could tell me how the market/government collapse was affecting everyday people (in terms of $/food/products) I can explain better offline if you email me back (not sure if this question/comment is public) many thanks nicole
by Nikka on 26/01/2009 at 20:05:28

Hi Jessica, Very clear write! I and my husband are sure, want to living in Iceland. When I we are there can I contacted with you?
by Krisztina on 13/02/2009 at 10:52:30

If you think Iceland is weird, try Utah. (Actually, don't.) I lived there for 3 years for my job before moving out to Seattle.
by sawa on 09/06/2009 at 09:52:30