Faroe Islands

About Faroe Islands

Background:

The population of the Faroe Islands is largely descended from Viking settlers who arrived in the 9th century. The islands have been connected politically to Denmark since the 14th century. A high degree of self government was granted the Faroese in 1948, who have autonomy over most internal affairs, while Denmark is responsible for justice, defense, and foreign affairs. The Faroe Islands are not part of the European Union.

PEOPLE

Population:
48,856 (July 2009 est.)
country comparison to the world: 208

Nationality:
noun: Faroese (singular and plural)
adjective: Faroese

Ethnic groups:
Scandinavian

Religions:
Evangelical Lutheran 83.8%, other and unspecified 16.2% (2006 administrative data)

Languages:
Faroese (derived from Old Norse), Danish

GOVERNMENT

Country Name:
conventional long form: none
conventional short form: Faroe Islands
local long form: none
local short form: Foroyar

Government type:
NA

Capital:
name: Torshavn
geographic coordinates: 62 01 N, 6 46 W
time difference: UTC 0 (5 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October

Independence:
none (part of the Kingdom of Denmark; self-governing overseas administrative division of Denmark)

Flag description:
white with a red cross outlined in blue extending to the edges of the flag; the vertical part of the cross is shifted toward the hoist side in the style of the Dannebrog (Danish flag); the flag resembles those of neighboring Iceland and Norway, and uses the same three colors - but in a different sequence

ECONOMY

Economy - overview:
The Faroese economy is dependent on fishing, which makes the economy vulnerable to price swings. The sector accounts for 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. 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 5.3% in December 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, and budget surpluses turned to deficits in 2008-09. 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 comparable to that of the Danes and other Scandinavians.

GDP (purchasing power parity):
$1.571 billion (2008 est.)
country comparison to the world: 191

GDP - per capita (PPP):
$48,200 (2008 est.)
country comparison to the world: 10

Budget:
revenues: $1.163 billion
expenditures: $1.139 billion (2006)

Inflation rate (consumer prices):
-1.1% (2009) 6.4% (2008)
country comparison to the world: 5

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

Exports:
$848 million (2008); $634 million (2006)
country comparison to the world: 154

Imports:
$983 million (2008); $751 million (2006)
country comparison to the world: 169

Exchange rates:
Danish kroner (DKK) per US dollar - 5.4742 (2009), 5.0236 (2008), 5.4797 (2007), 5.9468 (2006), 5.9969 (2005)