Greenland Economy 1997

Economy - overview Greenland suffered negative economic growth in the early 1990s, butsince 1993 the economy has improved. Nonetheless, prospects for substantialeconomic growth in the near future are poor. The Greenland Home Rule Government(GHRG) has pursued a light fiscal policy since the late 1980s which has helpedcreate surpluses in the public budget and low inflation. Since 1990, Greenlandhas registered a foreign trade deficit following the closure of the last remaininglead and zinc mine in 1989. Greenland today is critically dependent on fishingand fish exports; the shrimp fishery is by far the largest income earner.Despite resumption of several interesting hydrocarbon and minerals explorationactivities, it will take several years before production can materialize.Tourism is the only sector offering any near term potential and even thisis limited due to a short season and high costs. The public sector, includingpublicly owned enterprises and the municipalities, plays the dominant rolein Greenland's economy. About half the government revenues come from grantsfrom the Danish Government, an important supplement of GDP.

GDP purchasing power parity - $892 million (1995 est.)

GDP - real growth rate NA%

GDP - per capita purchasing power parity - $15,500 (1995 est.)

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

Inflation rate - consumer price index 1.8% (1995)

Labor force
total: 24,500 (1995 est.)

Unemployment rate 10.5% (1995 est.)

Budget
revenues: $706 million
expenditures: $697 million, including capital expenditures of $NA (1995)

Industries fish processing (mainly shrimp), handicrafts, furs, small shipyards

Industrial production growth rate NA%

Electricity - capacity 92,500 kW

Electricity - production 274.4 million kWh

Electricity - consumption per capita 2,691 kWh (1994-95)

Agriculture - products forage crops, small garden vegetables; sheep, fish

Exports
total value: $363.4 million (f.o.b., 1995)
commodities : fish and fish products 95%
partners: Denmark 89%, Japan 5%, UK 5%

Imports
total value: $421 million (c.i.f., 1995)
commodities: machinery and transport equipment 25%, manufactured goods 18%, foodand live animals 11%, petroleum products 6%
partners : Denmark 7.5%, Iceland 3.8%, Japan 3.3%, Norway 3.1%, US 2.4%, Germany2.4%, Sweden 1.8%

Debt - external $243 million (1995)

Economic aid substantial annual subsidy from Denmark - $427 million (1995)

Currency 1 Danish krone (DKr) = 100 oere

Exchange rates Danish kroner (DKr) per US$1 - 6.117 (January 1997), 5.799 (1996), 5.602(1995), 6.361 (1994), 6.484 (1993), 6.036 (1992)

Fiscal year calendar year

NOTE: The information regarding Greenland on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Greenland Economy 1997 information contained here. All suggestions for corrections of any errors about Greenland Economy 1997 should be addressed to the CIA.