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Faroe Islands

Introduction to Faroe Islands

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 attained in 1948.

Government

Capital:

Torshavn

National holiday:

Olaifest, 29 July

Economy

Economy overview:

The Faroese economy has had a strong performance since 1994, mostly as a result of increasing fish landings and high and stable export prices. Unemployment is falling and there are signs of labor shortages in several sectors. The positive economic development has helped the Faroese Home Rule Government produce increasing budget surpluses, which in turn help to reduce the large public debt, most of it owed to Denmark. However, the total dependence on fishing makes the Faroese economy extremely vulnerable, and the present fishing efforts appear in excess of what is a sustainable level of fishing in the long term. Oil finds close to the Faroese area give hope for deposits in the immediate Faroese area, which may eventually lay the basis for a more diversified economy and thus lessen dependence on Danish economic assistance. Aided by a substantial annual subsidy (15% of GDP) from Denmark, the Faroese have a standard of living not far below the Danes and other Scandinavians.

GDP:

purchasing power parity -$1billion (2001 est.)

GDP - composition by sector:

agriculture: 27%
industry: 11%
services: 62% (1999)

Agriculture products:

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

Industries:

fishing, fish processing, shipbuilding, construction, handicrafts 

Transportation

Highways:

total: 463 km
paved: 454 km
unpaved: 9 km (1999)

Ports and harbors:

Torshavn, Klaksvik, Tvoroyri, Runavik, Fuglafjordhur

Merchant marine:

total: 7 ships (1,000 GRT or over) 24,051 GRT/11,998 DWT
by type: cargo 3, container 1, petroleum tanker 1, roll on/roll off 1, short-sea/passenger 1
registered in other countries: 1 (2003 est.)
foreign-owned: Denmark 2, Norway 1, United Kingdom 1

Airports:

1 (2003 est.)

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