Greenland Economy Profile 2009

Economy - overview

The economy remains critically dependent on exports of shrimp and fish and on a substantial subsidy - about $700 million in 2008-09 - from the Danish Government, which supplies about 60% of government revenues. The public sector, including publicly-owned enterprises and the municipalities, plays the dominant role in the economy. Several interesting hydrocarbon and mineral exploration activities are ongoing and in 2007 a US firm signed an agreement with the Greenland Home Rule government to study the feasibility of building a multi-billion dollar aluminum smelter and hydropower plant. Denmark plans to reduce its subsidies to Greenland as revenues from oil exports come onstream.

GDP (purchasing power parity)

$1.1 billion (2001 est.)

GDP (official exchange rate)

$1.7 billion (2005)

GDP - real growth rate

2% (2005 est.)

GDP - per capita (PPP)

$20,000 (2001 est.)

GDP - composition by sector

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

Population below poverty line

NA%

Labor force

32,120 (2004)

Unemployment rate

9.3% (2005 est.)

Household income or consumption by percentage share

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

Budget

revenues: $1.36 billion
expenditures: $1.27 billion (2005)

Inflation rate (consumer prices)

1% (2005 est.)

Industries

fish processing (mainly shrimp and Greenland halibut); gold, niobium, tantalite, uranium, iron and diamond mining; handicrafts, hides and skins, small shipyards

Industrial production growth rate

NA%

Electricity - production

305 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0%
note: Greenland is shifting its electricity production from fossil fuel to hydropower production (2001)

Electricity - consumption

283.7 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

3,927 bbl/day (2006 est.)

Oil - imports

4,089 bbl/day (2005)

Oil - exports

149.5 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

forage crops, garden and greenhouse vegetables; sheep, reindeer; fish

Exports

$480 million (2006)

Exports - commodities

fish and fish products 94% (prawns 63%) (2001 est.)

Exports - partners

Denmark 64.4%, Japan 11.2%, Canada 4.9%, China 4.1% (2008)

Imports

$712 million (2006)

Imports - commodities

machinery and transport equipment, manufactured goods, food, petroleum products

Imports - partners

Denmark 59%, Sweden 20.8%, Norway 4.6%, UK 4.4% (2008)

Debt - external

$25 million (1999)

Economic aid - recipient

$512 million; note - 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