ward 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 minimal 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 have helped 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 (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):
NA

GDP - real growth rate:
10% (2001 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%

Unemployment rate:
1% (October 2000)

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)

Budget:
revenues: $488 million
expenditures: $484 million; including capital expenditures of $21
million (1999)

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:
292.6 million kWh (2004)

Electricity - production by source:
fossil fuel: 62.4%
hydro: 37.6%
nuclear: 0%
other: 0% (2001)

Electricity - consumption:
272.1 million kWh (2004)

Electricity - exports:
0 kWh (2004)

Electricity - imports:
0 kWh (2004)

Oil - production: