Total Area: 103,000 km²
GDP (in billion USD): 14
Iceland is a Nordic European island country situated at the confluence of the North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge.Iceland's house price index rose 4.39% during the year to November 2012, according to Statistics Iceland. When adjusted for inflation, house prices dropped 0.11%. Quarter-on-quarter, house prices rose by a meager 0.28% (-1.06% inflation-adjusted) in November 2012.
To save the economy and to help homeowners, Iceland's state-controlled banks have forgiven mortgage loans for more than 25% of the population since end-2008, equivalent to about 13% of the country's annual GDP.
Property prices are now just 2.3% below their pre-crisis levels seen in Q1 2008. However when adjusted for inflation, property prices are still 29.4% below their peak levels. The country's housing market is expected to remain weak in the coming months, as the government struggles to deflate its ballooning public and external debt, which severely limits its ability to deal with future shocks.