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Faroe Islands Economy 2020

SOURCE: 2020 CIA WORLD FACTBOOK AND OTHER SOURCES











Faroe Islands Economy 2020
SOURCE: 2020 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on January 27, 2020

Economy - overview:
The Faroese economy has experienced a period of significant growth since 2011, due to higher fish prices and increased salmon farming and catches in the pelagic fisheries. Fishing has been the main source of income for the Faroe Islands since the late 19th century, but dependence on fishing makes the economy vulnerable to price fluctuations. Nominal GDP, measured in current prices, grew 5.6% in 2015 and 6.8% in 2016. GDP growth was forecast at 6.2% in 2017, slowing to 0.5% in 2018, due to lower fisheries quotas, higher oil prices and fewer farmed salmon combined with lower salmon prices. The fisheries sector accounts for about 97% of exports, and half of GDP. Unemployment is low, estimated at 2.1% in early 2018. Aided by an annual subsidy from Denmark, which amounts to about 11% of Faroese GDP , Faroese have a standard of living equal to that of Denmark. The Faroe Islands have bilateral free trade agreements with the EU, Iceland, Norway, Switzerland, and Turkey.

For the first time in 8 years, the Faroe Islands managed to generate a public budget surplus in 2016, a trend which continued in 2017. The local government intends to use this to reduce public debt, which reached 38% of GDP in 2015. A fiscal sustainability analysis of the Faroese economy shows that a long-term tightening of fiscal policy of 5% of GDP is required for fiscal sustainability.

Increasing public infrastructure investments are likely to lead to continued growth in the short term, and the Faroese economy is becoming somewhat more diversified. Growing industries include financial services, petroleum-related businesses, shipping, maritime manufacturing services, civil aviation, IT, telecommunications, and tourism.

GDP (purchasing power parity):
$2.001 billion (2014 est.)
$1.89 billion (2013 est.)
$1.608 billion (2012 est.)
country comparison to the world (CIA rank, may be based on non-current data): 197
[see also: GDP country ranks ]

GDP (official exchange rate):
$2.765 billion (2014 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
5.9% (2017 est.)
7.5% (2016 est.)
2.4% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 35
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$40,000 (2014 est.)
country comparison to the world (CIA rank, may be based on non-current data): 45
[see also: GDP - per capita country ranks ]

Gross national saving:
25.7% of GDP (2012 est.)
25.2% of GDP (2011 est.)
25.9% of GDP (2010 est.)
country comparison to the world (CIA rank, may be based on non-current data): 53
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 52% (2013)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 29.6% (2013)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 18.4% (2013)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]

GDP - composition, by sector of origin:
agriculture: 18% (2013 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 39% (2013 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 43% (2013 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 (CIA rank, may be based on non-current data): 91
[see also: Industrial production growth rate country ranks ]

Labor force:
27,540 (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 206
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 15%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 15%
[see also: Labor force - by occupation - industry country ranks ]
services: 70% (December 2016 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
2.2% (2017 est.)
3.4% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 20
[see also: Unemployment rate country ranks ]

Population below poverty line:
10% (2015 est.)
[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 ]

Distribution of family income - Gini index:
22.7 (2013 est.)
21.6 (2011 est.)
country comparison to the world (CIA rank, may be based on non-current data): 157
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 835.6 million (2014 est.)
[see also: Budget - revenues country ranks ]
expenditures: 883.8 million (2014)
note: Denmark supplies the Faroe Islands with almost one-third of its public funds

Taxes and other revenues:
30.2% (of GDP) (2014 est.)
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-1.7% (of GDP) (2014 est.)
country comparison to the world (CIA rank, may be based on non-current data): 95
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
35% of GDP (2014 est.)
country comparison to the world (CIA rank, may be based on non-current data): 152
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
-0.3% (2016)
-1.7% (2015)
country comparison to the world (CIA rank, may be based on non-current data): 8
[see also: Inflation rate (consumer prices) country ranks ]

Exports:
$1.184 billion (2016 est.)
$1.019 billion (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 153
[see also: Exports country ranks ]

Exports - partners:
Russia 26.4%, UK 14.1%, Germany 8.4%, China 7.9%, Spain 6.8%, Denmark 6.2%, US 4.7%, Poland 4.4%, Norway 4.1% (2017)

Exports - commodities:
fish and fish products (97%) (2017 est.)

Imports:
$978.4 million (2016 est.)
$906.1 million (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 186
[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 33%, China 10.7%, Germany 7.6%, Poland 6.8%, Norway 6.7%, Ireland 5%, Chile 4.3% (2017)

Debt - external:
$387.6 million (2012)
$274.5 million (2010)
country comparison to the world (CIA rank, may be based on non-current data): 182
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
NA
[see also: Stock of direct foreign investment - at home country ranks ]

Exchange rates:
Danish kroner (DKK) per US dollar -
6.586 (2017 est.)
6.7269 (2016 est.)
6.7269 (2015 est.)
6.7236 (2014 est.)
5.6125 (2013 est.)


NOTE: 1) The information regarding Faroe Islands on this page is re-published from the 2020 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Faroe Islands Economy 2020 information contained here. All suggestions for corrections of any errors about Faroe Islands Economy 2020 should be addressed to the CIA or the source cited on each page.
2) The rank that you see is the CIA reported rank, which may have the following issues:
  a) They assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assigns counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order.






This page was last modified 27-Jan-20
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