), NC, NIB, UPU

Diplomatic representation in the US:

none (self-governing overseas administrative division of Denmark)

Diplomatic representation from the US:

none (self-governing overseas administrative division of Denmark)

Flag description:

white with a red cross outlined in blue extending to the edges of
the flag; the vertical part of the cross is shifted toward the hoist
side in the style of the Dannebrog (Danish flag)

Economy
Faroe Islands

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%

Budget:

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

Fiscal year:

calendar year

Inflation rate (consumer prices):

1.8% (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:

295 million kWh (2006 est.)

Electricity - consumption:

274.4 million kWh (2006 est.)

Electricity - exports:

0 kWh (2007 est.)

Electricity - imports:

0 kWh (2007 est.)

Electricity - production by source:

fossil fuel: 62.4%
hydro: 37.6%
nuclear: 0%