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• GDP: £70million (2001).
• Main exports: Wool, hides and meat.
• Main imports: Fuel, food and drink, building materials and clothing.
• Main trade partners: UK, Spain, Chile and France.
• Main exports: Wool, hides and meat.
• Main imports: Fuel, food and drink, building materials and clothing.
• Main trade partners: UK, Spain, Chile and France.
Economy
The economy is dominated by fishing and sheep-farming. The poor quality of the land precludes large scale crop-growing. Productivity in sheep-farming has increased sharply since the mid 1980s with improved working practices.
However, it is the fishing sector that now accounts for the islands’ much improved economic performance. The industry has grown substantially since 1982, assisted by the introduction of a licensing system in Falklands territorial waters. The presence of large quantities of squid, a very popular dish in several parts of the world, has fuelled an economic boom and the emergence of a ‘squidocracy’ – a group of individuals living on the islands who have become extremely wealthy as a result. There are some concerns about stock depletion, and controls have now been introduced.
Other plans for the Falklands’ economic development have proved less successful. Restrictions on Antarctic development have undermined the islands’ hope of deriving benefit from being an en route staging post. The search for oil and gas reserves began in earnest in 1995 after the signing of an agreement between the UK and Argentina; test drilling started in 1998 but no viable deposits have yet been located.
However, as long as the squid last, the Falklands economic outlook remains bright. Tourism, especially eco-tourism, is increasing rapidly, with about 30,000 visitors in 2001. Another significant source of income is interest paid on money that the government has in the bank. The British military presence also provides a sizable economic boost.
Despite the improvement in relations with Argentina, trade between the islands and the mainland is small and most trade is still conducted with the UK. The government introduced 'The Islands Plan, 2002/2005' which laid out plans to take the Islands forward over that period in sectors such as financial management, sustainable economy, quality of life and communications. Part of the plan was also to focus on relationships with Latin America, including co-operation with Argentina on matters of common interest such as oil exploration and fisheries.
However, it is the fishing sector that now accounts for the islands’ much improved economic performance. The industry has grown substantially since 1982, assisted by the introduction of a licensing system in Falklands territorial waters. The presence of large quantities of squid, a very popular dish in several parts of the world, has fuelled an economic boom and the emergence of a ‘squidocracy’ – a group of individuals living on the islands who have become extremely wealthy as a result. There are some concerns about stock depletion, and controls have now been introduced.
Other plans for the Falklands’ economic development have proved less successful. Restrictions on Antarctic development have undermined the islands’ hope of deriving benefit from being an en route staging post. The search for oil and gas reserves began in earnest in 1995 after the signing of an agreement between the UK and Argentina; test drilling started in 1998 but no viable deposits have yet been located.
However, as long as the squid last, the Falklands economic outlook remains bright. Tourism, especially eco-tourism, is increasing rapidly, with about 30,000 visitors in 2001. Another significant source of income is interest paid on money that the government has in the bank. The British military presence also provides a sizable economic boost.
Despite the improvement in relations with Argentina, trade between the islands and the mainland is small and most trade is still conducted with the UK. The government introduced 'The Islands Plan, 2002/2005' which laid out plans to take the Islands forward over that period in sectors such as financial management, sustainable economy, quality of life and communications. Part of the plan was also to focus on relationships with Latin America, including co-operation with Argentina on matters of common interest such as oil exploration and fisheries.
Business Etiquette
Punctuality for meetings is expected.
Office hours: Mon-Fri 0800-1200, 1300-1630 (government); Mon-Fri 0800-1200, 1300-1700 (private).
Office hours: Mon-Fri 0800-1200, 1300-1630 (government); Mon-Fri 0800-1200, 1300-1700 (private).
Business Contacts
Falkland Islands Development Corporation (FIDC)
Shackleton House, Stanley, FIQQ 1ZZ, Falkland Islands
Tel: 27211.
Falkland Islands Chamber of Commerce
Website: www.falklandislandschamberofcommerce.com
Shackleton House, Stanley, FIQQ 1ZZ, Falkland Islands
Tel: 27211.
Falkland Islands Chamber of Commerce
Website: www.falklandislandschamberofcommerce.com
