The Faroese economy continues to grow, but at a slower pace. Fisheries and aquaculture remain the key drivers. At the same time, lower fish quotas and volatile prices raise new risks, according to an analysis by Danmarks Nationalbank.
In 2024, Faroese GDP grew by 0.8% in real terms. This is well below the annual growth of more than 3% seen from 2021 to 2023. Growth is expected to remain positive in 2025 and 2026. Still, uncertainty is high due to global trade conditions and changes in fish quotas.
Fisheries and aquaculture dominate exports
Fisheries and fish farming account for about 93% of Faroese goods exports. Total annual export revenue in 2025 is around DKK 13 billion, equal to about EUR 1.74 billion. Pelagic fisheries and salmon farming are the main pillars.
Reduced quotas have hit several stocks. The quota for blue whiting has been cut by 41%, while the recommended cut for mackerel is as high as 70%, though no final deal is in place.
Mackerel exports make up more than 10% of total goods exports, making the sector highly exposed to quota cuts.
Salmon output up, prices down
Salmon farming shows a different pattern. Production rose sharply in 2025, while prices fell. The average export price of Faroese salmon dropped by about 37% from January to August 2025. Over the same period, export volumes increased by around 23%.
Total salmon exports are expected to exceed 100,000 tonnes in 2025, more than double the 2011 level. Salmon now accounts for almost half of all Faroese goods exports.
Higher risks ahead for a small economy
Lower quotas, trade tensions and price swings increase risk for a small and open economy that depends heavily on fisheries and aquaculture. While higher fish prices have partly offset lower volumes, income from fishing could fall if quota cuts deepen.
The report stresses the need for stronger economic buffers to withstand future shocks linked to fisheries and global markets.