Photo: Lavur Fredriksen/www.visitfaroeislands.com/
Following several years of economic turmoil in early the 1990’s, the Faroe Islands had a short period of positive economic development until the global economic crisis hit in 2008.
Due to the Faroese economy being very dependent on a single area, fishing, the economy is extremely volatile and vulnerable to fluctuation in world demand.
For the past 10 years the Faroe Islands have therefore tried to diversify their economy and expand the country’s competitive ability.
Accounting for almost 20 % of GDP and about 95 % of the Faroese exports, industrial fishery, fish processing and the fishing industry play a significant role in Faroese economy. Despite not being part of the EU, the Faroe Islands normally have numerous fishery agreements with countries in the North Atlantic Region, including the European Union, Iceland, Norway, Russia and Greenland. The agreements are essential in providing Faroese fishing vessels with a much needed flexibility to move to the regions most conducive in the respective seasons.
The Faroe Islands annually receive a block grant from Denmark amounting around 11,7 % of the Faroese national budget.
To read more about the economy of the Faroe Islands, visit: http://www.visitfaroeislands.com/about-the-faroe-islands/trade-and-industry/