Balance of payments
12. Oct 2022
Balance of payments remains high
The balance of payments on current accounts has seen sizeable surpluses since 2013.
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The balance of payments surplus for 2021 is at a similarly high level as in the years since 2013. A large portion of the 2021 surplus comes from a surplus on the balance of trade in goods. The balance of trade in goods increased from DKK 249 million in 2020 to DKK 778 million in 2021. Salmon exports, for example, increased by DKK 1,177 million from 2020 to 2021.
The growth in services imports has outpaced the growth in services exports, resulting in a DKK 99 million drop in the balance of trade in services from 2020 to 2021. Exports of tourism services have increased slightly from 2020 to 2021 as tourism recovered from the pandemic. Transport services exports have also increased, while revenues from other services have either declined or remained unchanged. Imports have increased in virtually all service categories.
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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.