Economy of the Faroe Islands Economy of the Faroe Islands The economy of the Faroe Islands was the 166th largest in the world in 2014, having a nominal gross domestic product (GDP) of $2.613 billion per annum. High dependence on fishing means the economy remains extremely vulnerable. The Faroese hope to broaden their economic base by building new fish-processing plants. Petroleum found close to the Faroese area gives hope for deposits in the immediate area, which may lay the basis to sustained economic prosperity. Also important are the annual subsidy from Denmark, which amounts to about 3% of the GDP. The Faroes have one of
Municipalities of the Faroe Islands (FKF). Hagstova Føroya - information from 2007.<br> Tórshavn is both the capital of the Streymoy region and its own region, the latter being identical with Tórshavn municipality, but not including the area of the former Kollafjarðar kommuna.<br> Klaksvík both capital of the Norðoyggjar region as well of its own region, which constitute of the two municipalities Klaksvík and Hvannasund. Municipalities of the Faroe Islands The Faroe Islands are administratively divided in 30 municipalities ("kommunur"), with about 120 cities and villages. Until December 31, 2008, there were 34 municipalities, and until December 31, 2004, there were 48 municipalities. In the coming