Falkland Islands (Islas Malvinas) Economy Profile 2008

Economy - 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 (purchasing power parity)

$75 million (2002 est.)

GDP (official exchange rate)

$NA

GDP - real growth rate

NA%

GDP - per capita (PPP)

$25,000 (2002 est.)

GDP - composition by sector

agriculture: 95%
industry: NA%
services: NA%

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

3.6% (1998)

Labor force

1,724 (est.) (1996)

Labor force - by occupation

agriculture: 95% (mostly sheepherding and fishing)
industry and services: 5% (1996)

Unemployment rate

full employment; labor shortage (2001)

Budget

revenues: $66.2 million
expenditures: $67.9 million (FY98/99 est.)

Industries

fish and wool processing; tourism

Industrial production growth rate

NA%

Electricity - production

16 million kWh (2005)

Electricity - consumption

14.88 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

240 bbl/day (2005 est.)

Oil - imports

227.9 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Agriculture - products

fodder and vegetable crops; sheep, dairy products; fish, squid

Exports

$125 million (2004 est.)

Exports - commodities

wool, hides, meat, fish, squid

Exports - partners

Spain 81.9%, US 6%, UK 4.5% (2006)

Imports

$90 million (2004 est.)

Imports - commodities

fuel, food and drink, building materials, clothing

Imports - partners

UK 72.5%, US 15.1%, Netherlands 8.5% (2006)

Debt - external

$NA

Economic aid - recipient

$0 (1997 est.)

Currency (code)

Falkland pound (FKP)

Exchange rates

Falkland pounds per US dollar - 0.4993 (2007), 0.5434 (2006), 0.5504 (2005), 0.5462 (2004), 0.6125 (2003)
note: the Falkland pound is at par with the British pound

Fiscal year

1 April - 31 March