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Icelanders in Shock as Tourism Collapse Halts Economic Miracle

  • Layoffs spread across the sector after the collapse of Wow Air
  • Governor says there’s room to cut rates to deal with recession
Iceland's Tourism Industry Thriving

Photographer: Joe Raedle/Getty Images

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Gudrun Asta Gunnarsdottir found herself at ground zero of Iceland’s latest crisis. Four months into her second pregnancy, the 33-year-old check-in desk operator was told she was one of 315 workers being laid off at Reykjavik’s international airport.

The news came as “a shock” and “caused a lot of sadness for everyone, especially because a lot of people are now looking for work at the same time,” said Gunnarsdottir, who was able to return part-time to her airport job.