Faroe Islands profile

Demography and Health

The Faroe Islands have a small population—about 54,719 people in 2024—making it one of the world’s smaller population bases. The demographic profile is shaped by a relatively low birth rate of 10.6 births per 1,000 people in 2023 (rank 151) and a crude death rate of 7.6 deaths per 1,000 people in 2023 (rank 83). The crude gap between births and deaths yields a natural increase of roughly 3.0 per 1,000 people, suggesting ongoing population growth even before considering migration. Life expectancy at birth is high at 83.1 years (rank 19), signaling strong health outcomes and long-lived populations. These health indicators, together with a positive net migration of 488 people in 2024 (rank 77), point to a society that benefits from effective health care and social systems while gradually growing the population through in-migration. The small population and high life expectancy also imply a demographic transition toward an aging profile, which can have long-run implications for workforce structure, elder care, and public spending. In sum, the demography depicts a high‑income community with excellent health outcomes and a modest but meaningful inflow of new residents, all set within a compact population footprint.

Economy

The Faroese economy is characterized by very high income levels relative to population size. GDP per capita stands at 71,774 current US dollars in 2023 (rank 13), while GDP per capita at purchasing power parity equals 78,165 international dollars (rank 14). This combination reflects a high standard of living in a small economy and underscores the value produced per resident. The economy also shows substantial openness to trade: exports of goods and services amount to 57.7% of GDP (rank 40) in 2023 and imports are 56.6% of GDP (rank 62), indicating a highly integrated, outward-facing economy where external demand and global linkages play a major role in economic activity. The balance between exports and imports around the mid‑50s of GDP suggests effective use of external markets to support consumption and investment, while the small domestic market makes external trade essential for scaling domestic opportunities. The combination of high per‑capita income and strong trade orientation implies a resilient economy that benefits from specialization and international linkages, though it may remain vulnerable to external shocks given its limited domestic scale. Overall, the economy reflects a prosperous, export‑driven model typical of small, open economies with well-developed standards of living.

Trade and Investment

Trade and investment dynamics for the Faroe Islands reveal a highly open economy. Exports of goods and services account for 57.7% of GDP in 2023, while imports represent 56.6% of GDP, signaling a closely matched and externally oriented trade pattern. This level of trade openness supports a high‑income profile and enables access to a wide array of goods, services, and investment capital, even within a compact market. The near‑parity between exports and imports also implies that external demand is a key driver of economic activity, reinforcing the importance of stable global markets and competitive production for the islands. Given the small population and high GDP per capita, investment decisions are likely calibrated to sustain productivity, maintain high living standards, and adapt to fluctuations in international demand. The data hint at an economy that leverages its strategic position and specialized capabilities to participate effectively in regional and global trade, while balancing imports to meet domestic needs. In essence, openness to trade appears to be a central pillar of growth and resilience for the Faroe Islands.

Governance and Institutions

While the dataset does not directly quantify governance and institutional quality, several indicators collectively imply a stable, well-functioning framework. The high life expectancy (83.1 years) and very high GDP per capita (current US$ 71,774; PPP 78,165) point to effective public services, prudent macroeconomic management, and strong human development outcomes. The small but growing population, coupled with positive net migration (488 in 2024), suggests a governance environment capable of managing social integration, housing, and labor supply to support sustained living standards. The alignment of high health, education, and income indicators typically reflects robust institutions, transparent regulation, and sound fiscal policy that collectively enable a high quality of life despite the territory’s small scale. However, the data do not reveal governance specifics such as regulatory quality, public expenditure efficiency, or institutional transparency, so conclusions are necessarily broad. Overall, the indicators imply capable institutions that support social welfare, economic stability, and prudent policy in a small, open economy.

Infrastructure and Technology

The economic indicators point to a well‑developed, technology‑intensive environment despite a small population. High GDP per capita, combined with strong health outcomes and extended life expectancy, suggests a solid provision of public services, education, and infrastructure. The near‑equal shares of exports and imports relative to GDP indicate sophisticated logistical capabilities and integration into international supply chains, which in turn require reliable transport, communications, and utility networks. Renewable energy use is reported as 7.9% of total final energy consumption in 2022, indicating ongoing efforts toward cleaner energy but room for further decarbonization and modernization of the energy mix. Per‑capita greenhouse gas emissions are relatively low at 0.931 t CO2e, ranking 184 in per‑capita terms, which aligns with a small, efficient economy and potential energy efficiencies within the system. The combination of high incomes, a small but capable workforce, and connectivity to global markets points to a modern infrastructure base that supports both residents and businesses, with opportunities to accelerate digital adoption and renewable energy integration to strengthen resilience and efficiency further.

Environment and Sustainability

Environmentally, the Faroe Islands exhibit a notably low per‑capita greenhouse gas footprint, with total emissions excluding LULUCF at 0.931 t CO2e per person in 2023 (rank 184). This places the territory among the lower emitters globally on a per‑capita basis, which is consistent with its small population, efficient living standards, and high energy efficiency. Yet renewable energy consumption remains modest at 7.9% of total final energy consumption in 2022 (rank 45), indicating substantial potential for expanding a cleaner energy mix. The data suggest a trajectory where decarbonization could be advanced by increasing the share of renewables, improving energy efficiency, and leveraging technological advances in grids and storage to reduce reliance on imported or fossil-based energy sources. The combination of low per‑capita emissions and existing energy indicators hints at a governance and policy environment that could accelerate sustainability gains while maintaining a high standard of living for residents.