Council: economy back on track next year

The national economy will grow by 4.6 percent in nominal prices this year after having slumped by 4.8 percent last year.

This is one of the predictions of the 2021 spring report from the economic council.

Aggregate demand and purchasing power increased last year despite the pandemic.

The report predicts that Faroese exporters will gradually regain their market share abroad, and tourists will start returning to the country, approaching pre-Covid levels sometime in 2022.

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Some tourism operators may risk bankruptcy if they lose one more summer. The council recommends a new rescue package for the tourism industry if the border restrictions are not lifted by this summer.

Another industry that has suffered greatly from the pandemic is the construction industry.

The economic council urges the government to keep public expenditures stable at the current levels, and a long-term expenditure plan is crucial.

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Higher duties should be imposed on key players in the fishery and aquaculture industries to help boost the national economy.

The council also recommends a review of how welfare services are financed with regards to the upcoming demographic changes.

The 2021 spring report is believed to be the last report from the current economic council as plans are in place to merge the council with the National Bank committee.

Read the full report (in Faroese only) here.

Read the Faroese version of this article here

Translated by prosa.fo

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