Faroe Islands Economy Profile 2009

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 (purchasing power parity)

$1 billion (2001 est.)

GDP (official exchange rate)

$1.7 billion (2005 est.)

GDP - real growth rate

2.4% (2005 est.)

GDP - per capita (PPP)

$31,000 (2001 est.)

GDP - composition by sector

agriculture: 27%
industry: 11%
services: 62% (1999)

Population below poverty line

NA%

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)
2.1% (2006)

Household income or consumption by percentage share

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

Budget

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

Inflation rate (consumer prices)

1.8% (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

fossil fuel: 62.4%
hydro: 37.6%
nuclear: 0%
other: 0% (2001)

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 - imports

4,636 bbl/day (2005)

Oil - exports

0 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 (2006)

Exports - commodities

fish and fish products 94%, stamps, ships (1999)

Exports - partners

Denmark 27.5%, UK 18.6%, Croatia 12%, Norway 11.7%, Nigeria 10%, Netherlands 5.5% (2008)

Imports

$751 million (2006)

Imports - commodities

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

Imports - partners

Denmark 50.1%, Norway 20%, Sweden 6.3%, UK 4.2%, Iceland 4.1% (2008)

Debt - external

$64 million (1999)

Economic aid - recipient

$105 million; note - annual subsidy from Denmark (2005)

Currency (code)

DKK

Currency (code)

Danish krone (DKK)

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

calendar year