Economy

 

The economy of the Faroe Islands is very fishy; literally, as fishing is the main industry of the Faroes. The concern is the country is too dependent on this industry which makes its economy extremely vulnerable. However the economy in the Faroes is strong with unemployment below 3%, one of the lowest rates in all of Europe. In the mid-nineties that number was much higher with a drop in the vital fish catch and poor economic management. Recently, petroleum has been discovered close to the Faroes giving hopes for another economic resource. Information Technology is beginning to be fostered in the Faroes with the results yet to be known. Although the unemployment rate is low a concern is that many high school graduates leave the Faroes for Denmark and other countries leaving their country with a mostly middle aged to elderly population. The country of Denmark helps the Faroes with an annual subsidy which amounts to approximately 6% of the Gross Domestic Product.

 

With fishing as the way of life in the Faroes it is not hard to imagine that they have become quite good at it. One of the cutting edge industries is aquaculture making it one of the most sustainable and profitable in all of Europe. Fishing amounts to 80% of the exports. Because the sea currents pass around the Faroes in both directions and the water temperature remains constant the quality of meat of the fish is out of this world. Great chefs come to the Faroes for the fish. The main catch are cod, haddock and saithe.

 

The currency of the Faroe Islands is the Faroese krona issued by the Danish National Bank and has the same value as the Danish Krone. The Faroese Stock Exchange was established in 2004. In the Faroes there are four main banks, two insurance companies and two life insurance companies. Along with some public funds this establishes the financial sector of the Faroe Islands.