Economy of the Faroe Islands

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After the severe economic troubles of the early 1990s, brought on by a drop in the vital fish catch and poor management of the economy, the Faroe Islands have come back in the last few years, with unemployment down to 5% in mid-1998, and holding below 3% since 2006, one of the lowest rates in Europe. Nevertheless, the almost total dependence on fishing means the economy remains extremely vulnerable. The Faroese hope to broaden their economical base by building new fish-processing plants. Petroleum found close to the Faroese area gives hope for deposits in the immediate area, which may lay the basis to sustained economic prosperity. Also important are the annual subsidy from Denmark, which amounts to about 6% of the GDP.[2]

Since 2000, new information technology and business projects have been fostered in the Faroe Islands to attract new investment. The result from these projects is not yet known but is hoped to bring a better market economy to the Faroe Islands.

The Faroes have one of the lowest unemployment rates in Europe, but this is not necessarily a sign of a recovering economy, as many young students move to Denmark and other countries once they are finished with high school. This leaves a largely middle-aged and elderly population that may lack the skills and knowledge to take IT positions on the Faroes.

Contents

Other statistics

Electricity - production: 269 GWh (2008)

Electricity - production by source:
fossil fuel: 55.5%
hydro: 38.7%
nuclear: 0%
other: 5.8% (2008)

Electricity - consumption: 173 GWh (1998)

Electricity - exports: 0 kWh (2008)

Electricity - imports: 0 kWh (2008)

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

Currency: 1 Danish krone (DKr) = 100 oere

Exchange rates: Danish kroner (DKr) per US$1 - 5.560 (2008), 7.336 (January 2000), 6.976 (1999), 6.701 (1998), 6.604 (1997), 5.799 (1996), 5.602 (1995)

Further reading

  • Apostle, Richard A. The Restructuration of the Faroese Economy The Significance of the Inner Periphery. Frederiksberg, Denmark: Samfundslitteratur, 2002. ISBN 8759308915
  • Elkjær-Hansen, Niels. The Faroe Islands Scenery, Culture, and Economy. Copenhagen: Royal Danish Ministry of Foreign Affairs, 1959.
  • Hagstova.fo

References

External links


Faroe Islands Greenland

French Polynesia Mayotte New Caledonia Saint Barthélemy Saint Martin Saint Pierre and Miquelon Wallis and Futuna

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