Economy - overview:
The economy was formerly based on agriculture, mainly sheep farming, but today fishing contributes the bulk of economic activity. In 1987, the government began selling fishing licenses to foreign trawlers operating within the Falkland Islands' exclusive fishing zone. These license fees total more than $40 million per year, which help support the island's health, education, and welfare system. Squid accounts for 75% of the fish taken. Dairy farming supports domestic consumption; crops furnish winter fodder. Foreign exchange earnings come from shipments of high-grade wool to the UK and the sale of postage stamps and coins. The islands are now self-financing except for defense. The British Geological Survey announced a 200-mile oil exploration zone around the islands in 1993, and early seismic surveys suggest substantial reserves capable of producing 500,000 barrels per day; to date, no exploitable site has been identified. An agreement between Argentina and the UK in 1995 seeks to defuse licensing and sovereignty conflicts that would dampen foreign interest in exploiting potential oil reserves. Political tensions between the UK and Argentina rose in early 2010 after a UK company began oil drilling activities in the waters around the Falkland Islands but abated somewhat when the drilling operation failed to discover commercially exploitable oil reserves. Tourism, especially eco-tourism, is increasing rapidly, with about 30,000 visitors in 2001. Another large source of income is interest paid on money the government has in the bank. The British military presence also provides a sizeable economic boost.

GDP (purchasing power parity):
$105.1 million (2002 est.)
country comparison to the world: 221
[see also: GDP (purchasing power parity) country ranks ]

GDP (official exchange rate):
$105.1 million (2002 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
NA%
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$35,400 (2002 est.)
country comparison to the world: 34
[see also: GDP - per capita country ranks ]

GDP - composition by sector:
agriculture: 95%
[see also: GDP - composition by sector - agriculture country ranks ]
industry: NA%
[see also: GDP - composition by sector - industry country ranks ]
services: NA% (1996 est.)
[see also: GDP - composition by sector - services country ranks ]

Labor force:
1,724 (1996) (1996)
country comparison to the world: 225
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 95% (mostly sheepherding and fishing)
[see also: Labor force - by occupation - agriculture country ranks ]
industry and services: 5% (1996)

Unemployment rate:
NA%
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA%
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA%
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Budget:
revenues: $66.2 million
[see also: Budget - revenues country ranks ]
expenditures: $67.9 million (FY98/99 est.)
[see also: Budget - expenditures country ranks ]

Inflation rate (consumer prices):
3.6% (1998)
country comparison to the world: 105
[see also: Inflation rate (consumer prices) country ranks ]

Agriculture - products:
fodder and vegetable crops; sheep, dairy products; fish, squid

Industries:
fish and wool processing; tourism

Industrial production growth rate:
NA%
[see also: Industrial production growth rate country ranks ]

Electricity - production:
16 million kWh (2007 est.)
country comparison to the world: 208
[see also: Electricity - production country ranks ]

Electricity - consumption:
14.88 million kWh (2007 est.)
country comparison to the world: 209
[see also: Electricity - consumption country ranks ]

Electricity - exports:
0 kWh (2008 est.)
[see also: Electricity - exports country ranks ]

Electricity - imports:
0 kWh (2008 est.)
[see also: Electricity - imports country ranks ]

Oil - production:
0 bbl/day (2009 est.)
country comparison to the world: 177
[see also: Oil - production country ranks ]

Oil - consumption:
0 bbl/day (2009 est.)
country comparison to the world: 206
[see also: Oil - consumption country ranks ]

Oil - exports:
0 bbl/day (2007 est.)
country comparison to the world: 197
[see also: Oil - exports country ranks ]

Oil - imports:
271 bbl/day (2007 est.)
country comparison to the world: 199
[see also: Oil - imports country ranks ]

Oil - proved reserves:
0 bbl (1 January 2010 est.)
country comparison to the world: 182
[see also: Oil - proved reserves country ranks ]

Natural gas - production:
0 cu m (2008 est.)
country comparison to the world: 198
[see also: Natural gas - production country ranks ]

Natural gas - consumption:
0 cu m (2008 est.)
country comparison to the world: 187
[see also: Natural gas - consumption country ranks ]

Natural gas - exports:
0 cu m (2008 est.)
country comparison to the world: 182
[see also: Natural gas - exports country ranks ]

Natural gas - imports:
0 cu m (2008 est.)
country comparison to the world: 182
[see also: Natural gas - imports country ranks ]

Natural gas - proved reserves:
0 cu m (1 January 2010 est.)
country comparison to the world: 182
[see also: Natural gas - proved reserves country ranks ]

Exports:
$125 million (2004 est.)
country comparison to the world: 188
[see also: Exports country ranks ]

Exports - commodities:
wool, hides, meat, fish, squid

Imports:
$90 million (2004 est.)
country comparison to the world: 211
[see also: Imports country ranks ]

Imports - commodities:
fuel, food and drink, building materials, clothing

Debt - external:
$NA
[see also: Debt - external country ranks ]

Exchange rates:
Falkland pounds (FKP) per US dollar - 0.5302 (2008), 0.4993 (2007), 0.5418 (2006), 0.5493 (2005), 0.5462 (2004)
note: the Falkland pound is at par with the British pound