The Faroese Economy – The boom has regained momentum

Analysis - November 2021 - No. 27

Authors Nagy, Flora; Schmith, Adrian Michael Bay
Subject Faroese economy; Economic activity and employment
Type Analysis
Year 2021
Published 18 November 2021
Abstract icon The Faroe Islands are experiencing widespread labour shortages, due to very low unemployment and an already high labour market participation rate. At the same time, the continued boom is supported by improved export prospects. Long-term fiscal planning will improve the resilience of the Faroese economy. Capital should be set aside in good times to draw upon in bad. With the ageing of the Faroese population, balance between expenditure and revenue is also important.