Faroe Islands Economy
Economy - overviewThe 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)
Population below poverty line
NA
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
Inflation rate
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)
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 - 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)
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)
Debt - external
$64 million (1999)
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)
