Faroese economy - Economic upturn and growing reform needs

Analysis - January 2023 - No. 1

Authors Tørsløv, Thomas Rasmusen Damsgaard; Holm, Lasse
Subject Faroese economy; Economic activity and employment; Inflation, wages and prices; Public finances and fiscal policy
Type Analysis
Year 2023
Published 9 January 2023
Abstract icon The Faroe Islands are experiencing an economic upturn with high fish prices, high employment and low unemployment. Despite the cyclical tailwinds, public finances are showing a deficit. The proportion of working-age adults will decline in the future, which increases the need for economically sustainable reforms