A Decade After Financial Collapse, Iceland Faces a New Crisis

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, Bloomberg News reported. 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. Arion Bank hf, in a report called “Tourism in Iceland: Soft landing or a belly flop,” warned the nation could face falling numbers of visitors next year after a boom that saw arrivals more than quadruple over the past decade. Tourism is the largest “export” and accounts for 12 percent of gross domestic product and about 20 percent of business investments, according to Arion. Read more.