| 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 required to ensure 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 less dependence on Denmark
and 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 -
$910 million (2000 est.)
GDP - real growth rate: 6% (1996 est.), 5% (2000 est.)
GDP - per capita: purchasing power parity - $20,000 (2000 est.)
GDP - composition by sector:
agriculture: 27%
industry: 11%
services: 62% (1999)
Inflation rate (consumer prices): 2.8% (1996 est.), 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: 5% (1998 est.), 1% (October 2000)
Budget:
revenues: $488 million
expenditures: $484 million, including capital expenditures of
$21 million (1999)
Industries: fishing, shipbuilding, construction, handicrafts
Industrial production growth rate: 8% (1999 est.)
Electricity - production: 170 million kWh (1999)
Electricity - production by source:
fossil fuel: 58.82%
hydro: 41.18%
nuclear: 0%
other: 0% (1999)
Agriculture - products: milk, potatoes, vegetables; sheep; salmon, other fish
Exports: $471 million (f.o.b., 1999)
Exports - commodities: fish and fish products 94%, stamps, ships
(1999)
Exports - partners: Denmark 31%,
United
Kingdom 25%, Germany 9%,
France 7%, Spain 6%,
United States
2%
(1996)
Imports: $469 million (c.i.f., 1999)
Imports - commodities: machinery and transport equipment 29%,
consumer goods 36%, raw materials and semi-manufactures 32%, fuels, fish
and salt (1999)
Imports - partners: Denmark 28%, Norway 26%, Germany 7%, UK 6%
Sweden 5%, Iceland 4%, US (1999)
Debt - external: $64 million (1999)
Economic aid - recipient: $135 million (annual subsidy from
Denmark) (1999)
Currency: Danish krone (DKK)
SOURCE: The World Factbook |