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 experience less than this, as the weather station is located at 105 meters above sea level. Akraberg is milder than much of the Faroe Islands and experiences frost on 38 days in an average year, possibly less in lower areas, as the weather station is located at an elevation of 101 meters above sea level. Vágar has colder and snowier winters than most other places in the archipelago. Lower temperatures combined with higher precipitation are responsible for this, and measurable snow cover can be seen- a rarity in the Faroe Islands, in which snow cover (in areas which regularly experience