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
Geography of the Faroe Islands Geography of the Faroe Islands The Faroe Islands are an island group consisting of eighteen islands between the Norwegian Sea and the North Atlantic, about half-way between Iceland and Norway. Its coordinates are . It is 1,393 square kilometres in area, and includes small lakes and rivers, but no major ones. There are 1,117 kilometres of coastline, and no land boundaries with any other country. The Faroe Islands generally have cool summers and mild winters, with a usually overcast sky and frequent fog and strong winds. Although at a high latitude, due to the Gulf Stream their climate is ameliorated.