This is also my experience as a foreigner living in Iceland. Tech companies that I’ve worked at work in English and the language even in Icelandic is peppered with English technical terms and idioms. The terms generally exist in Icelandic but are just ignored since their invention tends to follow the English term becoming commonly used. Even socially English idioms pop up relatively frequently. I’ve only got young kids but have witnessed kids outside of that chatting away to one another in English for extended periods then switching back to Icelandic. It’s definitely an accelerating and new trend. My partner is Icelandic and most people of her generation are at least able to speak English if not comfortable with it. A generation older and I’ve met many people who can’t.

There are other interesting trends as well. The relatively good economic situation and contributing tourist boom mean you very often will be served in downtown Reykjavík by someone who doesn’t speak Icelandic. Icelanders are simply off doing other jobs. In the scheme of things it’s a small change but very noticeably different from when I moved here.