Public spending neared 15.1 billion kroner as investment fell

Public-sector expenditure totalled just under 15.1 billion kroner in 2025, up 86.4 million kroner, or 0.6 per cent, from 2024, KVF reports.

The modest increase was mainly due to lower investment spending by both the government and municipalities, Statistics Faroe Islands said. Public-sector revenue reached 15.5 billion kroner, leaving a surplus of just under 400 million kroner.

Public investment amounted to 1.6 billion kroner, down 23.3 per cent from 2024. Government investment fell for the second year in a row, while municipal investment declined for the first time since 2021.