Economy of Falkland Islands
Overview
The economy was formerly based on agriculture, mainly sheep farming, but today fishing contributes the bulk of economic activity. In 1987 the government began selling fishing licenses to foreign trawlers operating within the Falkland Islands' exclusive fishing zone. These license fees total more than $40 million per year, which help support the island's health, education, and welfare system. Squid accounts for 75% of the fish taken. Dairy farming supports domestic consumption; crops furnish winter fodder. Exports feature shipments of high-grade wool to the UK and the sale of postage stamps and coins. The islands are now self-financing except for defense. The British Geological Survey announced a 200-mile oil exploration zone around the islands in 1993, and early seismic surveys suggest substantial reserves capable of producing 500,000 barrels per day; to date, no exploitable site has been identified. An agreement between Argentina and the UK in 1995 seeks to defuse licensing and sovereignty conflicts that would dampen foreign interest in exploiting potential oil reserves. Tourism, especially eco-tourism, is increasing rapidly, with about 30,000 visitors in 2001. Another large source of income is interest paid on money the government has in the bank. The British military presence also provides a sizeable economic boost.
GDP
Real Growth Rate
0%
Per Capita
USD 25,000
From Agriculture
95%
From Industry
0%
From Services
0%
Labour Force
Available for Work
1,724
Working in Agriculture
95%
Working in Industry
5%
Working in Services
0%
Unemployment Rate
0%
Population Below Poverty Line
0%
Inflation Rate
4%
Investment as Percent of GDP
0%
Budget
Revenues
USD 66 (m)
Expenditures
USD 68 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Fodder and vegetable crops; sheep, dairy products; fish, squid.
Core Industries
Fish and wool processing; tourism.
Exports
Value
USD 125 (m)
Commodities
Wool, hides, meat, fish, squid
Partners
Spain 81.9%, US 6%, UK 4.5% (2006)
Imports
Value
USD 90 (m)
Commodities
Fuel, food and drink, building materials, clothing
Partners
UK 72.5%, US 15.1%, Netherlands 8.5% (2006)
External Debt
USD Unknown (m)
Fiscal Year
1 April - 31 March
