economic activity)
above the sailing ship Desire (whose crew discovered the islands)
with a scroll at the bottom bearing the motto DESIRE THE RIGHT

Economy

Economy--overview: The economy was formerly based on agriculture,
mainly sheep farming, but today fishing contributes the bulk of
economic activity. In 1987 the government began selling fishing
licenses to foreign trawlers operating within the Falklands
exclusive fishing zone. These license fees total more than $40
million per year, which goes to support the island's health,
education, and welfare system. Squid accounts for 75% of the fish
taken. Dairy farming supports domestic consumption; crops furnish
winter fodder. Exports feature shipments of high-grade wool to the
UK and the sale of postage stamps and coins. To encourage tourism,
the Falkland Islands Development Corporation has built three lodges
for visitors attracted by the abundant wildlife and trout fishing.
The islands are now self-financing except for defense. The British
Geological Survey announced a 200-mile oil exploration zone around
the islands in 1993, and early seismic surveys suggest substantial
reserves capable of producing 500,000 barrels per day; to date no
exploitable site has been identified. An agreement between Argentina
and the UK in 1995 seeks to defuse licensing and sovereignty
conflicts that would dampen foreign interest in exploiting potential
oil reserves.

GDP: purchasing power parity--$NA

GDP--real growth rate: NA%

GDP--per capita: purchasing power parity?$NA

GDP--composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): NA%

Labor force: 1,100 (est.)

Labor force--by occupation: agriculture 95% (mostly sheepherding
and fishing)

Unemployment rate: full employment; labor shortage

Budget:
revenues: $66.1 million
expenditures: $66.8 million, including capital expenditures of $NA
(FY97/98 est.)

Industries: wool and fish processing; sale of stamps and coins

Industrial production growth rate: NA%

Electricity--production: 10 million kWh (1996)

Electricity--production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1996)

Electricity--consumption: 10 million kWh (1996)

Electricity--exports: