Economy - overview The economy was formerly based on agriculture, mainly sheep farming, which directly or indirectly employs most of the work force. 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. Rich stocks of fish in the surrounding waters are not presently exploited by the islanders. So far, efforts to establish a domestic fishing industry have been unsuccessful. The economy has diversified since 1987, when the government began selling fishing licenses to foreign trawlers operating within the Falklands exclusive fishing zone; overfishing is a growing problem. These license fees total more than $40 million per year and support the island's health, education, and welfare system. To encourage tourism, the Falkland Islands Development Corporation has built three lodges for visitors attracted by the abundant wildlife and trout fishing. 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. 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.

GDP purchasing power parity - $NA

GDP - real growth rate NA%

GDP - per capita purchasing power parity - $NA

GDP - composition by sector
agriculture: NA%
industry: NA%
services: NA%

Inflation rate - consumer price index NA%

Labor force
total: 1,100 (est.)
by occupation: agriculture 95% (mostly sheepherding)

Unemployment rate full employment; labor shortage

Budget
revenues: $53.4 million
expenditures: $53.1 million, including capital expenditures of $NA (1994-95 est.)

Industries wool and fish processing; sale of stamps and coins

Industrial production growth rate NA%

Electricity - capacity 9,000 kW (1995)

Electricity - production 10 million kWh (1995)

Electricity - consumption per capita 4,316 kWh (1995)

Agriculture - products fodder and vegetable crops; sheep farming, small dairy herds

Exports
total value: $7.6 million (1995)
commodities: wool, hides, meat
partners: UK, Netherlands, Japan (1992)

Imports
total value: $24.7 million (1995)
commodities: fuel, food and drink, building materials, clothing
partners: UK, Netherlands Antilles, Japan (1992)

Debt - external $NA

Economic aid
recipient: ODA, $NA
note: UK, ODA and OOF bilateral commitments totaled $18 million (1993-94)

Currency 1 Falkland pound (£F) = 100 pence

Exchange rates Falkland pound (£F) per US$1 - 0.6115 (January 1998), 0.6106 (1997), 0.6403 (1996), 0.6335 (1995), 0.6529 (1994), 0.6658 (1993); note - the Falkland pound is at par with the British pound

Fiscal year 1 April - 31 March

NOTE: The information regarding Falkland Islands (Islas Malvinas) on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Falkland Islands (Islas Malvinas) Economy 1998 information contained here. All suggestions for corrections of any errors about Falkland Islands (Islas Malvinas) Economy 1998 should be addressed to the CIA.