Economy of the Faroe Islands
Tórshavn is the capital and largest town of the Faroe Islands
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|
| Currency | Faroese króna (pegged with Danish krone, (DKK)) |
|---|---|
| calendar year | |
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Trade organisations
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none |
| Statistics | |
| GDP | $1.471 billion (2013 est.) |
| GDP rank | 166th (nominal) / 179th (PPP) |
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GDP growth
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7.5% (2013 est.) |
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GDP per capita
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$45,709 (2010 est.) |
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GDP by sector
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agriculture: 16%, industry: 29%, services: 55% (2007) |
| 2.3% (2011) | |
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Population below poverty line
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no data |
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Labour force
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34,710 (March 2010) |
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Labour force by occupation
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agriculture: 10.7%, industry: 18.9%, services: 70.3% (2010) |
| Unemployment | 5.5% (May 2012) |
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Main industries
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fishing, fish processing, fish farming, small ship repair and refurbishment, handicrafts |
| External | |
| Exports | $824 million f.o.b. (2010 est.) |
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Export goods
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fish and fish products 94%, stamps, ships |
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Main export partners
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 Russia 20.2% United Kingdom 16.6% Denmark 16.3% Nigeria 11.6% China 9.3% United States 7.2% Netherlands 5.6% Norway 4% (2015) |
| Imports | $776 million c.i.f. (2010 est.) |
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Import goods
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consumer goods 24%, machinery and transport equipment 23.5%, fuels 21.4%, raw materials and semi-manufactures, fish, salt |
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Main import partners
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Denmark 43.9% Turkey 12.3% Norway 10% China 6.2% Netherlands 4.9% Germany 4.4% (2015) |
| Public finances | |
| $888.8 million (2010) | |
| Revenues | $1.22 billion (2010) |
| Expenses | $1.301 billion (2010) |
| Economic aid | recipient: $100 million (annual subsidy from Denmark) (2007) |
 Current production
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The economy of the Faroe Islands was the 166th largest in the world in 2014, having a nominal gross domestic product (GDP) of $2.613 billion per annum.
High dependence on fishing means the economy remains extremely vulnerable. The Faroese hope to broaden their economic base by building new fish-processing plants. Petroleum found close to the Faroese area gives hope for deposits in the immediate area, which may lay the basis to sustained economic prosperity. Also important are the annual subsidy from Denmark, which amounts to about 3% of the GDP.
The Faroes have one of the lowest unemployment rates in Europe, but this is not necessarily a sign of a recovering economy, as many young students move to Denmark and other countries once they are finished with high school. This leaves a largely middle-aged and elderly population that may lack the skills and knowledge to take IT positions on the Faroes.
After the severe economic troubles of the early 1990s, brought on by a drop in the vital fish catch and poor management of the economy, the Faroe Islands have come back in the last few years, with unemployment down to 5% in mid-1998, and holding below 3% since 2006, one of the lowest rates in Europe.
Since 2000, new information technology and business projects have been fostered in the Faroe Islands to attract new investment. The result from these projects is not yet known but is hoped to bring a better market economy to the Faroe Islands.
In 2014 the Faroe Islands had a trade surplus of 401 million DKK. The Faroe Islands mainly imported from Denmark (1,625 million DKK), Norway (1,178 DKK), and Germany (548 million DKK). The country's top export destinations were Russia (1,059 million DKK), the United Kingdom (660 million DKK), the United States (660 million DKK), and Germany (639 million DKK). European Union countries contributed 62.7% of Faroese imports, while the exports of the Faroes Islands were almost equally distributed between European Union (49.8%) and non-European Union coutries (50.2%). The vast majority of Faroese exports, almost 95%, consists of fishery products.Russian countersanctions on food imports from Norway and the European Union, saw the Faroe Islands increase its fresh salmon exports to Russia.
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Wikipedia