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 required to ensure 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 less dependence on Denmark and
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 - $910 million (2000 est.)

GDP - real growth rate: 5% (2000 est.)

GDP - per capita: purchasing power parity - $20,000 (2000 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: 170 million kWh (1999)

Electricity - production by source: fossil fuel: 58.82%

hydro: 41.18%

nuclear: 0%

other: 0% (1999)

Electricity - consumption: 158.1 million kWh (1999)

Electricity - exports: 0 kWh (1999)

Electricity - imports: 0 kWh (1999)

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

Exports: $471 million (f.o.b., 1999)

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

Exports - partners: Denmark 32%, UK 21%, France 9%, Germany 7%,
Iceland 5%, US 5% (1996)

Imports: $469 million (c.i.f., 1999)

Imports - commodities: machinery and transport equ