Faroe Islands Economy 2008

Economy - overview:
The Faroese economy is dependent on fishing, which makes the economy vulnerable to price swings. 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)

Labor force:
24,250 (October 2000)

Labor force - by occupation:
agriculture: 33%
industry: 33%
services: 34% (October 2000)

Unemployment rate:
2.1% (2006)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
1.8% (2005)

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

Agriculture - products:
milk, potatoes, vegetables; sheep; salmon, other fish

Industries:
fishing, fish processing, small ship repair and refurbishment, handicrafts

Industrial production growth rate:
8% (1999 est.)

Electricity - production:
290 million kWh (2005)

Electricity - consumption:
269.7 million kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
0 bbl/day (2005 est.)

Oil - consumption:
4,600 bbl/day (2005 est.)

Oil - exports:
0 bbl/day (2004)

Oil - imports:
4,580 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Exports:
$634 million f.o.b. (2006)

Exports - commodities:
fish and fish products 94%, stamps, ships (1999)

Exports - partners:
Denmark 32%, UK 27%, Norway 10.2%, Nigeria 9.3%, Netherlands 5.5% (2006)

Imports:
$751 million c.i.f. (2006)

Imports - partners:
Denmark 53%, Norway 20.7%, Iceland 6%, Sweden 4.3% (2006)

Economic aid - recipient:
$105 million; note - annual subsidy from Denmark (2005)

Debt - external:
$64 million (1999)

Currency (code):
Danish krone (DKK)

Exchange rates:
Danish kroner per US dollar - 5.4797 (2007), 5.9468 (2006), 5.9969 (2005), 5.9911 (2004), 6.5877 (2003)