Overview: The Faroese enjoy a relatively high standard of living, with per capita GNP coming to $16,800 in 1986. Agricultural activities are limited to raising sheep and to potato and vegetable cultivation because of the cool summers. Fishing is the dominant economic activity. It employs over 25% of the labor force, accounts for about 25% of GNP, and contributes over 90% to export revenues. A handicraft industry employs about 20% of the labor force. The Faroes has a labor shortage, and immigrant workers accounted for 5% of the work force in 1987. Denmark annually subsidizes the economy; in 1986 the subsidy came to 15% of GDP.

GDP: $773 million, per capita $16,800
real growth rate NA% (1986)

Inflation rate (consumer prices): 4.3% (1986)

Unemployment rate: labor shortage Budget: revenues $176 million; expenditures $176 million, including capital expenditures of NA (FY86)

Exports: $267 million (f.o.b., 1986); @m5commodities--fish and fish products 86%, animal feedstuffs, transport equipment; @m5partners--Denmark 18%, US 14%, FRG, France, UK, Canada

Imports: $363 million (c.i.f., 1986); @m5commodities--machinery and transport equipment 38%, food and livestock 11%, fuels 10%, manufactures 10%, chemicals 5%
@m5partners: Denmark 46%, FRG, Norway, Japan, UK

External debt: $518 million (1986)

Industrial production: growth rate NA%

Electricity: 80,000 kW capacity; 245 million kWh produced, 5,230 kWh per capita (1988)

Industries: fishing, ship building, handicrafts

Agriculture: sheep and cattle herding, potatoes, vegetables;

Aid: NA

Currency: Danish krone (plural--kroner); 1 Danish krone (DKr) = 100 ore

Exchange rates: Danish kroner (DKr) per US$1--7.085 (January 1989), 6.732 (1988), 6.840 (1987), 8.091 (1986), 10.596 (1985)

Fiscal year: 1 April-31 March

NOTE: The information regarding Faroe Islands on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Faroe Islands Economy 1989 information contained here. All suggestions for corrections of any errors about Faroe Islands Economy 1989 should be addressed to the CIA.