Falkland Islands (Malvinas) Travel Guide

Falkland Islands (Malvinas) — Business

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Statistics

•GDP: £75million (2002).
• 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. Productivity in sheep-farming has increased sharply since the mid 1980s with improved working practices.

The fishing sector 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 who have become extremely wealthy as a result.

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. 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.

Trade between the islands and Argentina is small; most trade is still conducted with the UK.