Economy - overview:
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. 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. 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.

GDP (purchasing power parity):
$1.465 billion (2008 est.)
country comparison to the world: 194
[see also: GDP country ranks ]

GDP (official exchange rate):
$2.45 billion (2008 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
0.5% (2008 est.)
country comparison to the world: 194
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$30,300 (2008 est.)
country comparison to the world: 44
[see also: GDP - per capita country ranks ]

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

Labor force:
34,680 (November 2008)
country comparison to the world: 200
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 10.2%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 20.5%
[see also: Labor force - by occupation - industry country ranks ]
services: 69.2% (2008)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
5.7% (2010)
country comparison to the world: 57