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Iceland

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In 2003–2007, following the privatisation of the banking sector under the government of Davíð Oddsson, Iceland moved toward having an economy based on international investment banking and financial services. It was quickly becoming one of the most prosperous countries in the world but was hit hard by a major financial crisis. The crisis resulted in the greatest migration from Iceland since 1887, with a net emigration of 5,000 people in 2009. Iceland's economy stabilised under the government of Jóhanna Sigurðardóttir, and grew by 1. 6% in 2012. The centre-right Independence Party was returned to power in coalition with the Progressive Party in the 2013 elections. In the following years, Iceland saw a surge in tourism as the country became a popular holiday destination. In 2016, Prime Minister Sigmundur David Gunnlaugsson resigned after being implicated in the Panama Papers scandal. Early elections in 2016 resulted in a right-wing coalition government of the Independence Party, the Reform Party and Bright Future. This government fell when Bright Future quit the coalition due to a scandal involving then-Prime Minister Bjarni Benediktsson's father's letter of support for a convicted paedophile. Snap elections in October 2017 brought to power a new coalition consisting of the Independence Party, the Progressive Party and the Left-Green Movement, headed by Katrín Jakobsdóttir.

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