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A Bruised Iceland Heals Amid Europe’s Malaise

Andrew Testa for The New York Times

A ship docked at an aluminum plant near Reykjavik last month.

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REYKJAVIK, Iceland — For a country that four years ago plunged into a financial abyss so deep it all but shut down overnight, Iceland seems to be doing surprisingly well.

Adalheidur Hedinsdottir, who runs the coffee chain Kaffitar, plans to open a new cafe and start a bakery business.

It has repaid, early, many of the international loans that kept it afloat. Unemployment is hovering around 6 percent, and falling. And while much of Europe is struggling to pull itself out of the recessionary swamp, Iceland’s economy is expected to grow by 2.8 percent this year.

A Bruised Iceland Heals Amid Europe’s Malaise

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