Thanks. Interesting article...
Once they settle the issues they will have some debt overhang... but it will be manageable. They will become prosperous.
Iceland has some natural resources, but not enough to make the country extremely wealthy. They were going to sign sign some oil exploration leases before the melt down... if they follow through that might yield some GDP growth if oil is found. It seems that they rely heavily on the fishing industry.
If nothing else, you would think they could use their endless geothermal resources as low cost energy to convert energy (like water to hydrogen)... or other chemical conversion processes... and be in the middle of some sort of supply chain on a large industrial (but ecologically friendly) scale.
With a population of 319,000.... you would think their natural resources (although scant) would be enough to make everyone a big royalty check yearly.