Faroe Islands/

The Faroese economy is dependent on fishing, which makes the economy vulnerable to price swings. The sector accounts for about 95% of exports and nearly half of GDP. In early 2008 the Faroese economy began to slow as a result of smaller catches and historically high oil prices that continue to trouble the economy. Though oil prices have come down, reduced catches, especially of cod and haddock, have continued to strain the Faroese economy. GDP grew 0.5% in 2008-09. The slowdown in the Faroese economy followed a strong performance since the mid-1990s with annual growth rates averaging close to 6%, mostly a result of increased fish landings and salmon farming, and high export prices. Unemployment reached its lowest level in the first half of 2008, but increased to 3.9% in 2009 and is rising. The Faroese Home Rule Government produced increasing budget surpluses that helped to reduce the large public debt, most of it to Denmark. However, total dependence on fishing and salmon farming make the Faroese economy very vulnerable to fluctuations in world demand. In addition, budget surpluses turned to deficits in 2008-09, and the economy at both the country and local level is running large deficits. Initial discoveries of oil in the Faroese area give hope for eventual oil production, which may provide a foundation for a more diversified economy and less dependence on Danish economic assistance. Aided by an annual subsidy from Denmark amounting to about 6% of Faroese GDP, the Faroese have a standard of living almost equal to that of Denmark and Greenland.

$1.642 billion (2008 est.)

$2.45 billion (2008 est.)

0.5% (2008 est.)

$34,000 (2008 est.)

34,680 (November 2008)

3.9% (2009)

1.2% (2008)

NA%

-1.1% (2009)

6.4% (2008)

milk, potatoes, vegetables; sheep; salmon, other fish

fishing, fish processing, small ship repair and refurbishment, handicrafts

8% (2007 est.)

275.8 million kWh (2008 est.)

264.4 million kWh (2008 est.)

0 kWh (2008)

0 kWh (2008)

0 bbl/day (2009 est.)

5,000 bbl/day (2009 est.)

0 bbl/day (2008)

4,922 bbl/day (2008)

0 bbl (1 January 2010 est.)

0 cu m (2008)

0 cu m (2008)

0 cu m (2008)

0 cu m (2008)

0 cu m (1 January 2010 est.)

$848 million (2008)

$634 million (2006)

fish and fish products 94%, stamps, ships

Hungary 36.26%, Denmark 21.36%, UK 12.21%, Nigeria 7.72%, US 6.49%, Norway 5.46% (2009)

$983 million (2008)

$751 million (2006)

consumer goods 36%, raw materials and semi-manufactures 32%, machinery and transport equipment 29%, fuels, fish, salt

Denmark 54.42%, Norway 20.76%, Sweden 4.79% (2009)

$68.1 million (2006)

Danish kroner (DKK) per US dollar - 5.774 (2009), 5.0236 (2008), 5.4797 (2007), 5.9468 (2006)