SGAARD]; Union
Party [Lisbeth PETERSEN]

Political pressure groups and leaders:
NA

International organization participation:
IMO (associate), 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 has had a strong performance since 1994, mostly
as a result of increasing fish landings and high and stable 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 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
lessen dependence on 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 - $1 billion (2001 est.)

GDP - real growth rate:
10% (2001 est.)

GDP - per capita:
purchasing power parity - $22,000 (2001 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)

Agr