Economy Of Faroe Islands

Economy overview The Faroese economy has had a strong performance since 1994, mostly as a result of increasing fish landings and high and stable export prices. Unemployment is falling and there are signs of labor shortages in several sectors. The positive economic development has helped the Faroese Home Rule Government produce increasing budget surpluses, which in turn help to reduce the large public debt, most of it owed to Denmark. However, the total dependence on fishing makes the Faroese economy extremely vulnerable, and the present fishing efforts appear in excess of what is a sustainable level of fishing in the long term. Oil finds close to the Faroese area give hope for deposits in the immediate Faroese area, which may eventually lay the basis for a more diversified economy and thus lessen dependence on Danish economic assistance. Aided by a substantial annual subsidy (15% of GDP) from Denmark, the Faroese have a standard of living not far below the Danes and other Scandinavians.
 
GDP purchasing power parity - $1 billion (2001 est.)
 
GDP - real growth rate 10% (2001 est.)
 
GDP - per capita purchasing power parity - $22,000 (2001 est.)
 
GDP - composition by sector
agriculture: 27%
industry: 11%
services: 62% (1999)
 
Investment gross fixed  
Population below poverty line NA
 
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
 
Distribution of family income - Gini index  
Inflation rate consumer prices 5.1% (1999)
 
Labor force 24,250 (October 2000)
 
Labor force by occupation fishing, fish processing, and manufacturing 33%, construction and private services 33%, public services 34%
 
Unemployment rate 1% (October 2000)
 
Budget
revenues: $488 million
expenditures: $484 million, including capital expenditures of $21 million (1999)
 
Public debt  
Agriculture products milk, potatoes, vegetables; sheep; salmon, other fish
 
Industries fishing, fish processing, shipbuilding, construction, handicrafts
 
Industrial production growth rate 8% (1999 est.)
 
Electricity production 160.4 million kWh (2001)
 
Electricity production by source
fossil fuel: 62.4%
hydro: 37.6%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 149.1 million kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 4,500 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves  
Natural gas production  
Natural gas consumption  
Natural gas exports  
Natural gas imports  
Natural gas proved reserves  
Current account balance  
Exports $408 million f.o.b. (2002)
 
Exports commodities fish and fish products 94%, stamps, ships (1999)
 
Exports partners Denmark 36.7%, UK 32.1%, Netherlands 6.1%, Nigeria 5.6%, Norway 5.4% (2003)
 
Imports $466 million c.i.f. (2002)
 
Imports commodities machinery and transport equipment 29%, consumer goods 36%, raw materials and semi-manufactures 32%, fuels, fish and salt (1999)
 
Imports partners Denmark 52.7%, Norway 22.5%, Iceland 4.7%, Germany 4.2%, UK 4% (2003)
 
Reserves of foreign exchange gold  
Debt external $64 million (1999)
 
Economic aid recipient $135 million (annual subsidy from Denmark) (1998)
 
Currency Danish krone (DKK)
 
Currency code DKK
 
Exchange rates Danish kroner per US dollar - 6.5877 (2003), 7.89 (2002), 8.323 (2001), 8.083 (2000), 6.976 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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