Balance of payments
05. Oct 2023
Balance of payments DKK 137 million lower than in 2021
The balance of payments on current accounts has seen sizeable surpluses since 2013.The balance of payments on current accounts has seen sizeable surpluses since 2013.
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The balance of payments surplus for 2022 is at a similarly high level as in the years since 2013. However, since more services were imported to the Faroes than were exported, 2022 saw a services trade deficit of DKK 817 million. All other current account items posted surpluses. A large portion of the 2022 surplus comes from a positive balance of trade in goods. The balance of trade in goods decreased from DKK 968 million in 2021 to DKK 788 million in 2022.
The growth in services imports has been slower than the growth in service exports, resulting in a DKK 42 million increase in the balance of trade in services from 2021 to 2022. This growth is predominantly due to higher revenues from the transport industry.
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About the current account of the balance of payments
The balance of trade with other nations is based on questionnaires that Statistics Faroe Islands sends out to selected businesses. Due to this nature of information gathering, a certain degree of uncertainty is to be expected in the figures.
The balance of payments is a statement of all transactions made between entities in one country and the rest of the world. These transactions include trade of goods and services, income from labour and financial resources, and current transfers such as aid from the Danish state and social contribution from pension schemes and insurance claims.
These figures provide an insight into what type of services and transfers of primary and secondary income that take place between the Faroes and other nations.