Faroese economy reports 2.5 percent GDP growth in 2023

The real GDP growth in the Faroe Islands was 2.5 percent in 2023.

While the Faroese economy continues to grow, many European economies are experiencing slower growth rates. According to statistics from Hagstovan, the gross domestic product (GDP) at constant prices increased by 2.5 percent last year.

GDP is a measure of value creation within a country. When GDP is calculated at constant prices, it allows for the assessment of whether the quantity of goods and services produced is increasing or decreasing, regardless of price fluctuations. The annual change in GDP at constant prices serves as an indicator of real economic growth.

The Faroese economy has fared well following the global downturn triggered by the COVID-19 pandemic. GDP growth was over three percent in both 2021 and 2022. As a result, the pace of economic growth is now not as vigorous as it has been in recent years.