Economy of Faroe Islands
Overview
The Faroese economy is dependent on fishing, which makes the economy vulnerable to price swings. Since 2003 the Faroese economy has picked up as a result of higher prices for fish and for housing. Unemployment is minimal and government finances are relatively sound. Oil finds close to the Islands give hope for economically recoverable deposits, which could eventually lay the basis for a more diversified economy and lessen dependence on Danish economic assistance. Aided by a substantial annual subsidy (about 15% of GDP) from Denmark, the Faroese have a standard of living not far below the Danes and other Scandinavians.
GDP
Real Growth Rate
2%
Per Capita
USD 31,000
From Agriculture
27%
From Industry
11%
From Services
62%
Labour Force
Available for Work
Unknown
Working in Agriculture
33%
Working in Industry
33%
Working in Services
34%
Unemployment Rate
2%
Population Below Poverty Line
0%
Inflation Rate
2%
Investment as Percent of GDP
0%
Budget
Revenues
USD 588 (m)
Expenditures
USD 623 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Milk, potatoes, vegetables; sheep; salmon, other fish.
Core Industries
Fishing, fish processing, small ship repair and refurbishment, handicrafts.
Exports
Value
USD 634 (m)
Commodities
Fish and fish products 94%, stamps, ships (1999).
Partners
Denmark 31%, UK 27.4%, Norway 10.3%, Nigeria 9.5%, Netherlands 5.6% (2006).
Imports
Value
USD 751 (m)
Commodities
Consumer goods 36%, raw materials and semi-manufactures 32%, machinery and transport equipment 29%, fuels, fish, salt (1999).
Partners
Denmark 52.6%, Norway 20.7%, Iceland 6.1%, Sweden 4.3% (2006).
External Debt
USD 64 (m)
Fiscal Year
Calendar year
