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)

Economy

Economy--overview: After the severe economic troubles of the early
1990s, brought on by a drop in the vital fish catch, the Faroe
Islands have come back in the last few years, with unemployment down
to 5% in mid-1998. Nevertheless the total dependence on fishing
means the economy remains extremely vulnerable. The Faroese hope to
broaden their economic base by building new fish-processing plants.
Oil finds close to the Faroese area give hope for deposits in the
immediate Faroese area, which may lay the basis for sustained
economic prosperity. The Faroese are supported by a substantial
annual subsidy from Denmark.

GDP: purchasing power parity--$700 million (1996 est.)

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

GDP--per capita: purchasing power parity?$16,000 (1996 est.)

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

Population below poverty line: NA%

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

Inflation rate (consumer prices): 2.8% (1996 est.)

Labor force: 20,345 (1995 est.)

Labor force--by occupation: largely engaged in fishing,
manufacturing, transportation, and commerce

Unemployment rate: 5% (1998 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%

Electricity--production: 170 million kWh (1996)

Electricity--production by source:
fossil fuel: 52.94%
hydro: 47.06%
nuclear: 0%
other: 0% (1996)

Electricity--consumption: 170 million kWh (1996)

Electricity--exports: 0 kWh (1996)

Electricity--imports: 0 kWh (1996)

Agriculture--products: milk, potatoes, vegetables; sheep; salmon,
other fish

Exports: $362 million (f.o.b., 1995)

Exports--commodities: fish and fish products 92%, animal
feedstuffs, transport equipment (ships)

Exports--partners: Denmark 22.2%, UK 25.8%, Germany 9.7%, France
8.3%, Norway 6.2%, US 2.0%

Imports: $315.6 (c.i.f., 1995)

Imports--commodities: machinery and transport equipment 17.0%,
consumer goods 33%, raw materials and semi-manufactures 26.9%, fuels
11.4%, fish and salt 6.7%

Imports--p