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 Falklands exclusive fishing
zone. These license fees total more than $40 million per year, which
goes to 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 - real growth rate:
NA%
GDP - per capita:
purchasing power parity - $25,000 (2002 est.)
GDP - composition by sector:
agriculture: NA%
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:
1,100 (est.)
Labor force - by occupation:
agriculture 95% (mostly sheepherding and fishing)
Unemployment rate:
full employment; labor shortage
Budget:
revenues: $66.2 million
expenditures: $67.9 million, including capital expenditures of $23.2
million (FY98/99 est.)
Industries:
fish and wool processing; tourism
Industrial production growth rate:
NA%
Electricity - production:
16.33 million kWh (2001)
Electricity - production by source:
fossil fuel: 100%
hydro: 0%
other: 0% (2001)
nuclear: 0%
Electricity - consumption:
15.19 million kWh (2001)
Electricity - exports:
0 kWh (2001)
Electricity - imports:
0 kWh (2001)
Oil - production:
0 bbl/day (2001 est.)
Oil - consumption:
200 bbl/day (2001 est.)
Oil - exports:
NA (2001)
Oil - imports:
NA (2001)
Agriculture - products:
fodder and vegetable crops; sheep, dairy products
Exports:
$7.6 million (1995)
Exports - commodities:
wool, hides, meat
Exports - partners:
Spain 76.2%, UK 9.2%, US 7.1% (2002)
Imports:
$24.7 million (1995)
Imports - commodities:
fuel, food and drink, building materials, clothing
Imports - partners:
UK 57.9%, Spain 19.8%, Italy 16.7% (2002)
Debt - external:
$NA
Economic aid - recipient:
none
Currency:
Falkland pound (FKP)
Currency code:
FKP
Exchange rates:
Falkland pounds per US dollar - 0.67 (2002), 0.69 (2001), 0.66
(2000), 0.62 (1999), 0.6 (1998); note - the Falkland pound is at par
with the British pound
Fiscal year:
1 April - 31 March