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Status of the Faroese Economy, Mid-2006

In the past year, the Faroese economy has picked up, supported by rising pricesfor fish and an upward trend for housing prices. Unemployment has fallen, andthe net emigration trend seen in recent years has ceased. In spite of high growthin imports, it is estimated that the current account continued to show a surplusin 2005. Government finances are expected to be close to balance in 2006. Thefavourable economic development is set to continue in the coming year.