Faroese economy - The Faroese economic boom is losing momentum

Analysis - December 2020 - No. 29

Authors Schmith, Adrian Michael Bay; Nagy, Flora
Subject Faroese economy; Economic activity and employment
Type Analysis
Year 2020
Published 16 December 2020
Nine months after the outbreak for the corona pandemic, employment on the Faroe Islands is high, unemployment very low, and parts of the economy experience labour shortages. However, exports have lost speed this year on the back of extraordinary growth, and the economic boom now seems to have peaked. In the future, more elderly and less working-aged challenges the sustainability of public finances. It is important to prioritize reforms early on that bring a balance to income and expenses in the future.