Greenland Economy

June 29, 2010Greenlandby EconomyWatch

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Fishing and hunting continues to be a dominating sector in Greenland. All kinds of fishes, ranging from shrimps to cod, are found in Greenland. Fishing exports account for a large share of Greenland’s income. Tourism sector is the next best contributor to Greenland’s economy.

Greenland GDP

As per CIA’s World Factbook estimates, total GDP of Greenland amounted to $1.1 billion in 2001. GDP per capita in 2001 was around $20,000. GDP growth in Greenland is about 2 percent.

Inflation

According to 2005 estimates, inflation in Greenland was around 1 percent. Greenland Home Rule Government has played a major role in maintaining low inflation in Greenland. Tight fiscal policies have ensured that inflation remains low and under control.

Imports and exports

In 2006, commodities worth $712 million were imported into Greenland. Major import commodities included machinery, transport equipments, food, petroleum products, and manufactured goods. Denmark accounted for more than 65 percent of Greenland’s imports.

In 2006, an estimated $480 million worth of commodities were exported from Greenland. Ninety-four percent of Greenland’s total exports included fish products. Major export partners of Greenland included countries like Denmark, Japan, Canada and China. Denmark accounted for 62.2 percent of Greenland’s exports.

Weaknesses

Greenland’s economy continues to be heavily dependent on the fishing industry. Nearly half of Greenland’s revenues come from Danish Government’s support. Tourism sector is affected by short seasons. High costs also that affect tourism in Greenland.

Future of Greenland

Future of Greenland depends on how air transportation and telecommunications can be improved. Less dependence on fishing industry can also help in modernizing Greenland. Tourism sector, though faced by numerous challenges, can lead to better economic prospects for Greenland.