h a red cross outlined in blue that extends to the edges of the
flag; the vertical part of the cross is shifted to the hoist side in the
style of the DANNEBROG (Danish flag)

:Faroe Islands Economy

Overview:
The Faroese, who have long been enjoying the affluent living standards of
the Danes and other Scandinavians, now must cope with the decline of the
all-important fishing industry and with an external debt twice the size of
annual income. When the nations of the world extended their fishing zones to
200 nautical miles in the early 1970s, the Faroese no longer could continue
their traditional long-distance fishing and subsequently depleted their own
nearby fishing areas. The government's tight controls on fish stocks and its
austerity measures have caused a recession, and subsidy cuts will force
further reductions in the fishing industry, which has already been plagued
with bankrupcies. An annual Danish subsidy of $140 million continues to
provide roughly one-third of the islands' budget revenues.
GDP:
purchasing power equivalent - $662 million, per capita $14,000; real growth
rate 3% (1989 est.)
Inflation rate (consumer prices):
2.0% (1988)
Unemployment rate:
5-6% (1991 est.)
Budget:
revenues $425 million; expenditures $480 million, including capital
expenditures of NA (1991 est.)
Exports:
$386 million (f.o.b., 1990 est.)
commodities:
fish and fish products 88%, animal feedstuffs, transport equipment (1989)
partners:
Denmark 20%, Germany 18.3%, UK 14.2%, France 11.2%, Spain 7.9%, US 4.5%
Imports:
$322 million (c.i.f., 1990 est.)
commodities:
machinery and transport equipment 24.4%, manufactures 24%, food and
livestock 19%, fuels 12%, chemicals 6.5%
partners:
Denmark 43.8%, Norway 19.8%, Sweden 4.9%, Germany 4.2%, US 1.3%
External debt:
$1.3 billion (1989)
Industrial production:
growth rate NA%
Electricity:
80,000 kW capacity; 280 million kWh produced, 5,910 kWh per capita (1991)
Industries:
fishing, shipbuilding, handicrafts
Agriculture:
accounts for 27% of GDP and employs 27% of labor force; principal crops -
potatoes and vegetables; livestock - sheep; annual fish catch about 360,000
metric tons
Economic aid:
none
Currency:
Danish krone (plural - kroner); 1 Danish krone (DKr) = 100 ore
Exchange rates:
Danish kroner (DKr) per US$1 - 6.116 (January