Overview: The Faroese, who have long been enjoying the affluent living standards of the Danes and other Scandinavians, now must cope with the decline of the all-important fishing industry and with an external debt twice the size of annual income. 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; one estimate foresaw a 25% drop in fish catch in 1990 alone. Half the fishing fleet is for sale, and the 22 fish-processing plants work at only half capacity. The government no longer can maintain its high level of spending on roads and tunnels, hospitals, sports facilities, and other social welfare programs.

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

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

Unemployment rate: NA%, but increasing

Budget: revenues $442 million; expenditures $442 million, including capital expenditures of NA (1989)

Exports: $343 million (f.o.b., 1989 est.); commodities--fish and fish products 88%, animal feedstuffs, transport equipment; partners--Denmark 16%, UK 14%, FRG 13.4%, US 10%, France 9%, Japan 5%

Imports: $344 million (c.i.f., 1989 est.); commodities--machinery and transport equipment 30%, manufactures 16%, food and livestock 15%, chemicals 6%, fuels 4%
partners: Denmark 44%, Norway 16%, FRG 6%, Sweden 6%, US 3%

External debt: $1.3 billion (1989)

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

Economic aid: none

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

Exchange rates: Danish kroner (DKr) per US$1--5.817 (January 1991), 6.189 (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 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Faroe Islands Economy 1991 information contained here. All suggestions for corrections of any errors about Faroe Islands Economy 1991 should be addressed to the CIA.