Falkland Islands (Islas Malvinas) Economy Profile 2002

Economy - overview

The economy was formerly based on agriculture, mainly sheep farming, but today fishing contributes the bulk of economic activity. In 1987 the government began selling fishing licenses to foreign trawlers operating within the Falklands exclusive fishing zone. These license fees total more than $40 million per year, which goes to support the island's health, education, and welfare system. Squid accounts for 75% of the fish taken. Dairy farming supports domestic consumption; crops furnish winter fodder. Exports feature shipments of high-grade wool to the UK and the sale of postage stamps and coins. The islands are now self-financing except for defense. The British Geological Survey announced a 200-mile oil exploration zone around the islands in 1993, and early seismic surveys suggest substantial reserves capable of producing 500,000 barrels per day; to date no exploitable site has been identified. An agreement between Argentina and the UK in 1995 seeks to defuse licensing and sovereignty conflicts that would dampen foreign interest in exploiting potential oil reserves. Tourism is increasing rapidly, with about 30,000 visitors in 2001. The second largest source of income is interest paid on money the government has in the bank. The British military presence also provides a sizeable economic boost.

GDP (purchasing power parity)

purchasing power parity - $52 million (1996 est.)

GDP - real growth rate

1%

GDP - per capita (PPP)

purchasing power parity - $19,000

GDP - composition by sector

agriculture: NA%
industry: NA%
services: NA%

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

3.6% (1998) (1998)

Labor force

1,100 (est.)

Labor force - by occupation

agriculture 95% (mostly sheepherding and fishing)

Unemployment rate

full employment; labor shortage

Budget

revenues: $66.2 million
expenditures: $67.9 million, including capital expenditures of $23.2 million

Industries

wool and fish processing; sale of stamps and coins; tourism

Industrial production growth rate

NA%

Electricity - production

12 million kWh (1999)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1999)

Electricity - consumption

11.2 million kWh (1999)

Electricity - exports

0 kWh (1999)

Electricity - imports

0 kWh (1999)

Agriculture - products

fodder and vegetable crops; sheep, dairy products

Exports

$7.6 million (1995)

Exports - commodities

wool, hides, meat

Exports - partners

UK, Japan, Chile, NZ

Imports

$24.7 million (1995)

Imports - commodities

fuel, food and drink, building materials, clothing

Imports - partners

UK, Japan, Chile, NZ

Debt - external

$NA

Economic aid - recipient

none

Currency

Falkland pound (FKP)

Currency (code)

FKP

Exchange rates

Falkland pounds per US dollar - 0.6981 (January 2002), 0.6944 (2001), 0.6596 (2000), 0.6180 (1999), 0.6037 (1998), 0.6106 (1997); note - the Falkland pound is at par with the British pound

Fiscal year

1 April - 31 March