, People's Party 1

Judicial branch: none

Political parties and leaders: Social Democratic Party [Joannes
EIDESGAARD]; Workers' Party [Alis JACOBSEN]; Home Rule Party [Helena
Dam A NEYSTABO]; Unionist Party [Edmund JOENSEN]; Republican Party
[Heini O. HEINESEN]; Center Party [Tordur NICLASEN]; Christian
People's Party [Niels Pauli DANIELSEN]; People's Party [Arnfinn
KALLSBERG]

International organization participation: none

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 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

Economy-overview: The Faroese economy in 1995 and 1996 saw a
noticeable upturn after several years of decline brought on by a drop
in fish catches and declining prices and by over-spending by the
Faroese Home Rule Government (FHRG). In the early 1990s, property
values plummeted, and the FHRG had to bail out and merge the two
largest Faroese banks. Fishing is now improving; wage costs are
increasing; the FHRG's budget is almost in balance; and the large
foreign debt has come down significantly. Nevertheless, the total
dependence on fishing makes the Faroese economy extremely vulnerable,
and the reduction in the foreign debt is at the cost of low
investment. Oil finds close to the Faroese area give hope for deposits
in the immediate Faroese area, which may lay the basis for an eventual
economic rebound. The Faroese are supported by a substantial annual
subsidy from Denmark.

GDP: purchasing power parity-$800 million (1996 est.)

GDP-real growth rate: 6% (1996 est.)

GDP-per capita: purchasing power parity-$16,300 (1996 est.)

GDP-composition by sector:
agriculture: 20%
industry: 16%
services: 64% (1996 est.)

Inflation rate-consumer price index: 2.8% (1996 est.)

Labor force:
total: 20,345 (1995 est.)
by occupation: largely engaged in fishing, manufacturing,
transportation, and commerce

Unemployment rate: 11% (1996 est.)

Budget:
revenues: $467 million
expenditures: $468 million, including capital expenditures of $11
million (1996 est.)

Industries: fishing, shipbuilding, construction, handicrafts

Industrial production growth rate: NA%

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