WASHINGTON - Iceland's financial crisis will push the economy deeply into recession next year, with unemployment likely to quadruple to 5.7 percent, the International Monetary Fund forecast on Wednesday.

The forecasts, presented along with the IMF's approval of a $2.1 billion loan for Iceland, show real gross domestic product contracting by 9.6 percent in 2009, compared with estimated growth of 1.6 percent for this year.