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The Economy of Faroe Islands

Faroese Economy

Faroe Islands' map

Economy - overview: The Faroese economy is dependent on fishing, which makes the economy vulnerable to price swings. The sector accounts for 95% of exports and nearly half of GDP. 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:

GDP - real growth rate: 2.4% (2005 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 27% industry: 11% services: 62% (1999)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 24,250 (October 2000)

Labor force - by occupation: agriculture: 11.2% industry: 21.9% services: 66.9% (2007)

Unemployment rate: 1.4% (2007)

Budget: revenues: $588 million expenditures: $623 million (2005)

Industries: fishing, fish processing, small ship repair and refurbishment, handicrafts

Industrial production growth rate: 8% (1999 est.)

Electricity - production: 295 million kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 274.4 million kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 4,628 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 4,636 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: milk, potatoes, vegetables; sheep; salmon, other fish

Exports: $634 million f.o.b. (2006)

Exports - commodities: fish and fish products 94%, stamps, ships (1999)

Exports - partners: Denmark 29.6%, UK 24.5%, Norway 13.3%, Nigeria 10.5%, Netherlands 6.8% (2007)

Imports: $751 million c.i.f. (2006)

Imports - commodities: consumer goods 36%, raw materials and semi-manufactures 32%, machinery and transport equipment 29%, fuels, fish, salt (1999)

Imports - partners: Denmark 51.9%, Norway 21.6%, Sweden 5%, UK 4.6% (2007)

Debt - external: $64 million (1999)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Danish kroner (DKK) per US dollar - 5.0236 (2008 est.), 5.4797 (2007), 5.9468 (2006), 5.9969 (2005), 5.9911 (2004)

Fiscal year: