Economy - overview:
The Faroese economy has had a strong performance since 1994, mostly
as a result of increasing fish landings and high and stable export
prices. Unemployment is falling and there are signs of labor
shortages in several sectors. The positive economic development has
helped the Faroese Home Rule Government produce increasing budget
surpluses, which in turn help to reduce the large public debt, most
of it owed to Denmark. However, the total dependence on fishing
makes the Faroese economy extremely vulnerable, and the present
fishing efforts appear in excess of what is a sustainable level of
fishing in the long term. Oil finds close to the Faroese area give
hope for deposits in the immediate Faroese area, which may
eventually lay the basis for a more diversified economy and thus
lessen dependence on Danish economic assistance. Aided by a
substantial annual subsidy (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 - real growth rate:
10% (2001 est.)
GDP - per capita:
purchasing power parity - $22,000 (2001 est.)
GDP - composition by sector:
agriculture: 27%
industry: 11%
services: 62% (1999)
Population below poverty line:
NA%
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices):
5.1% (1999)
Labor force:
24,250 (October 2000)
Labor force - by occupation:
fishing, fish processing, and manufacturing 33%, construction and
private services 33%, public services 34%
Unemployment rate:
1% (October 2000)
Budget:
revenues: $488 million
expenditures: $484 million, including capital expenditures of $21
million (1999)
Industries:
fishing, fish processing, shipbuilding, construction, handicrafts
Industrial production growth rate:
8% (1999 est.)
Electricity - production:
160.4 million kWh (2001)
Electricity - production by source:
fossil fuel: 62.4%
hydro: 37.6%
other: 0% (2001)
nuclear: 0%
Electricity - consumption:
149.1 million kWh (2001)
Electricity - exports:
0 kWh (2001)
Electricity - imports:
0 kWh (2001)
Oil - production:
0 bbl/day (2001 est.)
Oil - consumption:
4,500 bbl/day (2001 est.)
Oil - exports:
NA (2001)
Oil - imports:
NA (2001)
Agriculture - products:
milk, potatoes, vegetables; sheep; salmon, other fish
Exports:
$418 million f.o.b. (2001)
Exports - commodities:
fish and fish products 94%, stamps, ships (1999)
Exports - partners:
Denmark 39.9%, UK 32.1%, Norway 7.4%, Netherlands 6.1% (2002)
Imports:
$469 million c.i.f. (1999)
Imports - commodities:
machinery and transport equipment 29%, consumer goods 36%, raw
materials and semi-manufactures 32%, fuels, fish and salt (1999)
Imports - partners:
Denmark 53.8%, Norway 24.2%, Iceland 5.7% (2002)
Debt - external:
$64 million (1999)
Economic aid - recipient:
$55 million (annual subsidy from Denmark)
Currency:
Danish krone (DKK)
Currency code:
DKK
Exchange rates:
Danish kroner per US dollar - 7.89 (2002), 8.32 (2001), 8.08
(2000), 6.98 (1999), 6.7 (1998)
Fiscal year:
calendar year