Overview: The Faroese enjoy the high standard of living characteristic of the Danish and other Scandinavian economies. Fishing is the dominant economic activity. It employs over 25% of the labor force, accounts for about 25% of GDP, and contributes over 80% to export revenues. A handicraft industry employs about 20% of the labor force. Because of cool summers agricultural activities are limited to raising sheep and to potato and vegetable cultivation. There is a labor shortage, and immigrant workers accounted for 5% of the work force in 1989. Denmark annually subsidizes the economy, perhaps on the order of 15% of GDP.

GDP: $662 million, per capita $14,000; real growth rate 3% (1989 est.)

Inflation rate (consumer prices): 2.0% (1988)

Unemployment rate: labor shortage

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

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

Imports: $363 million (c.i.f., 1986); commodities--machinery and transport equipment 38%, food and livestock 11%, fuels 10%, manufactures 10%, chemicals 5%;

partners: Denmark 46%, FRG, Norway, Japan, UK

External debt: $NA

Industrial production: growth rate NA%

Electricity: 80,000 kW capacity; 280 million kWh produced, 5,910 kWh per capita (1989)

Industries: fishing, shipbuilding, handicrafts

Agriculture: accounts for 27% of GDP and employs 27% of labor force; principal crops--potatoes and vegetables; livestock--sheep; annual fish catch about 360,000 metric tons

Aid: none

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

Exchange rates: Danish kroner (DKr) per US$1--6.560 (January 1990), 7.310 (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 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Faroe Islands Economy 1990 information contained here. All suggestions for corrections of any errors about Faroe Islands Economy 1990 should be addressed to the CIA.