. Index
. 1996 Index
. Flag
. Geography
. People
. Government
. Economy
. Transportation
. Commun'tions
. Defense
. Geo Names
. Feedback
===========
|
Faroe Islands Economy 1996
The Faroese, who have long enjoyed the affluent living standards of the
Danes and other Scandinavians, now must cope with the decline of the
all-important fishing industry and one of the world's heaviest per capita
external debts of about $25,000. When the nations of the world extended
their fishing zones to 200 nautical miles in the early 1970s, the Faroese no
longer could continue their traditional long-distance fishing and
subsequently depleted their own nearby fishing areas. The government's tight
controls on fish stocks and its austerity measures have caused a recession,
and subsidy cuts will force nationalization in the fishing industry, which
has already been plagued with bankruptcies. Copenhagen has threatened to
withhold its annual subsidy of $130 million - roughly one-third of the
islands' budget revenues - unless the Faroese make significant efforts to
balance their budget. To this extent the Faroe government is expected to
continue its tough policies, including introducing a 20% value-added tax
(VAT) in 1993, and has agreed to an IMF economic-political stabilization
plan. In addition to its annual subsidy, the Danish government has bailed
out the second largest Faroe bank to the tune of $140 million since October
1992.
GDP - purchasing power parity - $662 million (1989 est.)
-
National product real growth rate:
-
National product per capita:
-
Inflation rate (consumer prices):
$482.7 million, including capital expenditures of $NA (1993 est.)
$345.3 million (f.o.b., 1993 est.)
fish and fish products 88%, animal feedstuffs, transport equipment (ships)
(1989)
Denmark 20%, Germany 18.3%, UK 14.2%, France 11.2%, Spain 7.9%, US 4.5%
$234.4 million (c.i.f., 1993 est.)
machinery and transport equipment 24.4%, manufactures 24%, food and
livestock 19%, fuels 12%, chemicals 6.5%
Denmark 43.8%, Norway 19.8%, Sweden 4.9%, Germany 4.2%, US 1.3%
fishing, shipbuilding, handicrafts
accounts for 27% of GDP; principal crops - potatoes and vegetables;
livestock - sheep; annual fish catch about 360,000 metric tons
receives an annual subsidy from Denmark of about $130 million
1 Danish krone (DKr) = 100 oere
Danish kroner (DKr) per US$1 - 6.034 (January 1995), 6.361 (1994), 6.484
(1993), 6.036 (1992), 6.396 (1991), 6.189 (1990)
|
|