Faroe Islands

Føroyar Færøerne Faroe Islands
Constituent part of the ‌Kingdom of Denmark


Anthem Tú alfagra land mítt


Capital	Tórshavn

Government	Autonomous constituent country and parliamentary democracy
Monarch
- 1948-1972	Frederik IX
- From 1972	Margrethe II

Legislature	Løgting

History
- March 30, 1948	Self-government
- June 5, 1953	Constitution of Denmark

Area	1,399 km²

Population
- 2010	48,917
Density	34.9/km²

GDP	2010 (PPP)
- Total	US$ 1.6 billion
- Per capita	US$ 33,700

Currency	Faroese króna

Denmark-Norway
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The Faroe Islands is a constituent part of the Kingdom of Denmark located in Northern Europe, between the Norwegian Sea (₳|₩) and the North Atlantic Ocean (₳|₩). Faroese nationals are citizens of Denmark, and even if Danish citizens also are citizens of the European Union, they are not able to exercise any those provisions as long as they reside in the 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.^[1]

Economy

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. 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 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. In addition, budget surpluses turned to deficits in 2008-09, and the economy at both the country and local level is running large deficits. 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.^[2]