Page last updated on January 12, 2017

Economy - overview:
The Faroese economy has experienced a period of significant growth since 2011, due to increases in fish prices, salmon farming, and catches in the pelagic fisheries. Nominal GDP growth was an estimated 7.5% in 2013 and 5.9% in 2014. The fisheries sector accounts for about 95% of exports and half of GDP. Unemployment is low, estimated at 2.9% in mid-2015.The public budget has exhibited deficits since 2008, which were financed through increased borrowing. Public debt reached 38% of GDP in 2015. Aided by an annual subsidy from Denmark amounting to about 4% of Faroese GDP, the Faroese have a standard of living equal to that of Denmark.Dependence on fishing makes the economy vulnerable to price fluctuations. Projections for fish prices are favorable and increasing public infrastructure investments are likely to lead to continued growth in the short term.

GDP (purchasing power parity):
$1.831 billion (2014 est.) $1.729 billion (2013 est.) $1.471 billion (2013 est.)
country comparison to the world: 198
[see also: GDP country ranks ]

GDP (official exchange rate):
$2.32 billion (2010 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
5.9% (2014 est.) 7.5% (2013 est.) 2.9% (2013 est.)
country comparison to the world: 26
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$36,600 (2014 est.)
country comparison to the world: 51
[see also: GDP - per capita country ranks ]

GDP - composition, by sector of origin:
agriculture: 16%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 29%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 55% (2007 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
milk, potatoes, vegetables; sheep; salmon, herring, mackerel and other fish

Industries:
fishing, fish processing, tourism, small ship repair and refurbishment, handicrafts

Industrial production growth rate:
3.4% (2009 est.)
country comparison to the world: 69
[see also: Industrial production growth rate country ranks ]

Labor force:
25,000 (2015 est.)
country comparison to the world: 207
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 10.7%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 18.9%
[see also: Labor force - by occupation - industry country ranks ]
services: 70.3% (November 2010)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
2.9% (2015 est.) 3.1% (2014)
country comparison to the world: 20
[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: $1.025 billion
[see also: Budget revenues country ranks ]
expenditures: $1.301 billion
[see also: Budget expenditures country ranks ]
note: Denmark supplies the Faroe Islands with almost one-third of their public funds (2010 est.)

Taxes and other revenues:
44.2% of GDP (2010 est.)
country comparison to the world: 22
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-11.9% of GDP (2010 est.)
country comparison to the world: 205
[see also: Budget surplus (+) or deficit (-) country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
2.3% (2011) 0.4% (2010)
country comparison to the world: 122
[see also: Inflation rate (consumer prices) country ranks ]

Exports:
$824 million (2010) $767 million (2009)
country comparison to the world: 164
[see also: Exports country ranks ]

Exports - commodities:
fish and fish products 95%, ships (2009 est.)

Exports - partners:
Russia 20.2%, UK 16.6%, Denmark 16.3%, Nigeria 11.6%, China 9.3%, US 7.2%, Netherlands 5.6%, Norway 4% (2015)

Imports:
$776 million (2010) $786 million (2009)
country comparison to the world: 185
[see also: Imports country ranks ]

Imports - commodities:
goods for household consumption, machinery and transport equipment, fuels, raw materials and semi-manufactures, cars

Imports - partners:
Denmark 43.9%, Turkey 12.3%, Norway 10%, China 6.2%, Netherlands 4.9%, Germany 4.4% (2015)

Debt - external:
$888.8 million (2010) $68.1 million (2006)
country comparison to the world: 168
[see also: Debt - external country ranks ]

Exchange rates:
Danish kroner (DKK) per US dollar - 6.865 (2016 est.) 6.7236 (2015 est.) 5.6183 (2014 est.) 5.6125 (2013 est.) 5.79 (2012 est.)