The economy of the Faroe Islands was the 166th largest in the world in 2014, having a nominal gross domestic product (GDP) of $2.613 billion per annum.

[14] After the severe economic troubles of the early 1990s, brought on by a drop in the vital fish catch and poor management of the economy, the Faroe Islands have recently recovered, with unemployment down to 5% in mid-1998, and holding below 3% since 2006, one of the lowest rates in Europe.

Salaries by industry, 2019[15] High dependence on fishing (including salmon farming) means the Faroe Islands' economy remains vulnerable.

[17] The Faroes have one of the lowest unemployment rates in Europe (1% in 2019),[18] but this is not necessarily a sign of a recovering economy, as many young students move to Denmark and other countries once they are finished with high school.

This leaves a largely middle-aged and elderly population that may lack the skills and knowledge to take IT positions in business and industry.

[14][23] Russian countersanctions on food imports from Norway and the European Union, saw the Faroe Islands increase its fresh salmon exports to Russia.

[33][39] In 2014 and 2017[40] 50.8% of the electricity production of SEV in the Faroe Islands came from green energy like hydro and wind, while 49.2% was produced by the thermal power plants, which was 12.4% less than in 2013.