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Youths Flee Struggling Iceland

Ailing economy forcing mass exodus

By Ambreen Ali,  Newser User

Posted Dec 2, 2008 3:49 PM CST
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(Newser) – Iceland faces its largest exodus in a century as job seekers flee the ailing nation, which is steeped in its worst financial crisis since independence. One survey estimates about half of Icelanders between 18 and 24 plan are thinking about leaving the country for Norway and other relatively strong economies. Iceland's own $7.5 billion economy may shrink by 10% next year even as the IMF provides a $4.6 billion boost, Bloomberg reports.

Inflation has reached an 18-year high as the tiny economy collapses under its foreign debt. Anti-government protests have turned violent as tensions rise on both sides. The state estimates that unemployment—which reached a 3-year high in October at 2%—will hit 7% by January.

Around 2000 demonstrators crowd into a city square in Reykjavik during a protest provoked by the country's economic collapse.
Around 2000 demonstrators crowd into a city square in Reykjavik during a protest provoked by the country's economic collapse.   (AP Photo/Brynjar Gunnarsson)
Some of the thousands of Icelanders who protested outside Iceland's parliament at the country's economic meltdown.
Some of the thousands of Icelanders who protested outside Iceland's parliament at the country's economic meltdown.   (AP Photo/Brynjar Gunnarsson)
Protesters posters and potatoes dumped as a symbol of Iceland's looming penury are seen outside Icelandic parliament building.
Protesters posters and potatoes dumped as a symbol of Iceland's looming penury are seen outside Icelandic parliament building.   (AP Photo/Brynjar Gunnarsson)
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COMMENTS
Showing 2 of 2 comments
Guest
Dec 3, 2008 4:39 AM CST
Sad. Just a week before the meltdown I was reading an article about Iceland's "economic miracle", and how great everyone has it there. Guess that's all shot now.
Shannonals
Dec 3, 2008 1:31 AM CST
Guess everyone is hurting

Iceland wishes it had the euro now
New York Times

Banks' high risks caused crisis
CNN

Iceland at risk as it turns 90
Reuters

World • Money

 
inflation • world economy • unemployment • Iceland • banking • weakening economy • financial crisis

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