Economics
A Decade After Financial Collapse, Iceland Faces a New Crisis
- Iceland tourism arrivals could decline next year, Arion says
- Turmoil in industry triggered central bank krona intervention
This article is for subscribers only.
Just as Iceland looks back at a decade of recovery since its financial and economic collapse, the north Atlantic island is once again grappling with an existential challenge for one of its key industries.
Tourism and the foreign cash it provides was instrumental in digging the 340,000-person nation out of its deep hole. Now, the industry is cooling fast and problems are mounting for its airlines after years of rapid expansion. Rewind to 10 years ago, and a similar tale could be told about the nation’s banks.