Economy of Greenland

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The Economy of Greenland suffered negative growth in the early 1990s, but since 1993 the economy has improved. The Greenland Home Rule Government (GHRG) has pursued a tight fiscal policy since the late 1980s which has helped create surpluses in the public budget and low inflation. Since 1990, Greenland has registered a foreign trade deficit following the closure of the last remaining lead and zinc mine in 1990. Greenland today is critically dependent on fishing and fish exports; the shrimp fishery is by far the largest income earner. Despite resumption of several interesting hydrocarbon and minerals exploration activities, it will take several years before production can materialize. Tourism is the only sector offering any near-term potential and even this is limited due to a short season and high costs. The public sector, including publicly owned enterprises and the municipalities, plays the dominant role in Greenland's economy. About half the government revenues come from grants from the Danish Government, an important supplement of GDP.

GDP:

purchasing power parity - $1 100 million (2001 est.)

GDP - real growth rate:

1,8% (2001 est.)

GDP - per capita:

purchasing power parity - $20 000 (2001 est.)

GDP - composition by sector:

agriculture:

industry:

services:

Population below poverty line:

Household income or consumption by percentage share:

lowest 10%:

highest 10%:

Inflation rate (consumer prices):

1,6% (1999 est.)

Labour force:

24,500 (1999 est.)

Unemployment rate:

10% (1999 est.)

Budget:

revenues:

$646 million

expenditures:

$629 million, including capital expenditures of $85 million (1999)

Industries:

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

Industrial production growth rate:

Electricity - production:

242,2 GWh (2003)

Electricity - production by source:

fossil fuel:

100%

hydro:

nuclear:

other:

0% (1998)

Electricity - consumption:

225,3 GWh (2003)

Electricity - exports:

0 kWh (1998)

Electricity - imports:

0 kWh (1998)

Agriculture - products:

forage crops, garden vegetables; sheep, reindeer; fish

Exports:

$480 million (f.o.b., 2004)

Exports - commodities:

fish and fish products 95%

Exports - partners:

Denmark 63,3%, Japan 12,5%, the People's Republic of China 3,9%

Imports:

$601 million (c.i.f., 1995)

Imports - commodities:

machinery and transport equipment, manufactured goods, food and live animals, petroleum products

Imports - partners:

Denmark 78,4%, Sweden 11,9%, Norway 2,7%

Debt - external:

$25 million (1999)

Economic aid - recipient:

$380 million subsidy from Denmark (1997)

Currency:

1 Danish krone (DKr) = 100 oere

Exchange rates:

Danish kroner (DKr) per US$1 - 5.669 (2005), 5.9911 (2004), 6.5877 (2003), 7.8947 (2002), 8.3228 (2001), 7.336 (January 2000), 6.976 (1999), 6.701 (1998), 6.604 (1997), 5.799 (1996), 5.602 (1995)