Currency | Danish krone (DKK, kr.) |
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calendar year | |
Country group | High-income economy [1] |
Statistics | |
Population | 56,653 (2021) [2] |
GDP | |
GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
Population below poverty line | 16.2% (2015 est.) [4] |
33.9 medium (2015 est.) [4] | |
| |
Labour force | |
Labour force by occupation |
|
Unemployment | 9.1% (2015 est.) [4] |
Main industries | fish processing (mainly shrimp and Greenland halibut); Oil, gold, niobium, tantalite, uranium, iron, and diamond mining; handicrafts, hides, skins, small shipyards |
External | |
Exports | $407.1 million (2015 est.) [4] |
Export goods | fish and fish products 91% (2015 est.) |
Main export partners | |
Imports | $783.5 million (2015 est.) [4] |
Import goods | machinery and transport equipment, manufactured goods, food, petroleum products |
Main import partners | |
Gross external debt | $36.4 million (2010) [4] |
Public finances | |
13% of GDP (2015 est.) [4] | |
+5.6% (of GDP) (2016 est.) [4] | |
Revenues | 1.719 billion (2016 est.) [4] |
Expenses | 1.594 billion (2016 est.) [4] |
Economic aid | $650 million subsidy from the Kingdom of Denmark (2012) |
All values, unless otherwise stated, are in US dollars. |
The economy of Greenland is characterized as small, mixed and vulnerable. [9] Greenland's economy consists of a large public sector and comprehensive [10] foreign trade. This has resulted in an economy with periods of strong growth, considerable inflation, unemployment problems and extreme dependence on capital inflow from the Kingdom Government. [9]
GDP per capita is close to the average for European economies, but the economy is critically dependent upon substantial support from the Danish government, which supplies about half the revenues of the self-rule government, which in turn employs 10,307 Greenlanders [11] out of 25,620 currently in employment (2015). Unemployment nonetheless remains high, with the rest of the economy dependent upon demand for exports of shrimp and fish. [12]
Except for an abortive royal colony established under Major Claus Paarss between 1728 and 1730, colonial Greenland was administered by companies under royal charter until 1908. Hans Egede's Hope Colony was organized under the auspices of the Bergen Greenland Company prior to its bankruptcy in 1727; it was succeeded by the merchant Jacob Severin (1733–1749), the General Trade Company (Det almindelige Handelskompagni; 1749–1774), and finally the Royal Greenland Trading Department (KGH; 1776–1908).
Early hopes of mineral or agricultural wealth were dashed, and open trade proved a failure owing to other nations' better quality, lower priced goods and hostility. [13] Kale, lettuce, and other vegetables were successfully introduced, but repeated attempts to cultivate wheat or clover failed throughout Greenland, limiting the ability to raise European livestock. [14] After government-funded whaling failed, the KGH eventually settled on maintaining the native Greenlanders in their traditional pursuits of hunting and whaling and enforced a monopoly on trade between them and Europe. Repeated attempts to open trade were opposed on both commercial and humanitarian grounds, although minor reforms in the 1850s and 60s lowered the prices charged to the natives for "luxuries" like sugar and coffee; transferred more of the KGH's profits to local communities; and granted the important Ivigtut cryolite concession to a separate company. [13]
During the years before World War I, the KGH's independence was curtailed and the company folded into the Ministry of the Interior. Climate change, apparent since the 1920s, disrupted traditional Kalaallit life as the milder weather reduced the island's seal populations but filled the waters offshore with cod. [15] After World War II, reforms were finally enacted by the Danish Greenland Commission composed of Greenland Provincial Council members and Danish economists. The report outlined a program to end the KGH model and establish a modern welfare state on the Danish model and supported by the Kingdom Government. The KGH monopolies were ended in 1950; Greenland was made an equal part of the Kingdom of Denmark in 1953 and Home Rule granted in 1979.
The KGH had long opposed urbanization of the Kalaallit Greenlanders, but during the 1950s and 1960s the Danish government introduced an urbanization and modernization program aimed at consolidating existing settlements. The program was intended to reduce costs, improve access to education and health care, and provide workers for modernized cod fisheries, which were growing rapidly at the time. The program faced a number of problems including the collapse of the fisheries and the shoddy construction of many of the buildings, particularly the infamous Blok P, and produced a number of problems of its own, including continuing unemployment and alcoholism.
Greenland left the European Economic Community in February 1985, [16] principally due to EEC policies on fishing and sealskin. Most EU laws do not apply to Greenland; however, owing to its connection with Denmark, Greenland continues to enjoy preferential access to EU markets. [16] In the same year, Greenland exercised its new control over the Royal Greenland Trading Company to reestablish it as KNI. Over the next few decades, divisions of the conglomerate were slowly spun off and competition within the Greenlandic economy somewhat increased.
Following the closure of the Maarmorilik lead and zinc mine in 1990 and the collapse of the cod fisheries amid colder ocean currents, Greenland faced foreign trade deficits and a shrinking economy, but it has been growing since 1993. [17]
The Greenland economy is extremely dependent on exports of fish and on support from the Danish Government, which supplies about half of government revenues. [18] The public sector, including publicly owned enterprises and the municipalities, plays the dominant role in the economy.
The largest employers in Greenland are the various levels of administration, including the central Kingdom Government in Denmark, the Local Greenland Self-Rule Government, and the municipalities. Most of these positions are in the capital Nuuk. [19] In addition to this direct employment, the government heavily subsidizes other major employers in other areas of the economy, including Great Greenland Furhouse's seal skin purchases, Pilersuisoq's rural stores, and some of Air Greenland and Royal Arctic's regional routes.
The second-largest sector by employment is Greenland's fishing industry. The commercial fishing fleet consists of approximately 5,000 dinghies, 300 cutters, and 25 trawlers. While cod was formerly the main catch, today the industry centers on cold-water shrimp and Greenland halibut. [19]
The fish processing industry is almost entirely centered on Royal Greenland, the world's largest retailer of cold-water shrimp. [19]
Whaling and seal hunting were once traditional mainstays of Greenland's economy. Greenlanders still kill an estimated 170,000 seals a year [19] and 175 whales a year, [20] [21] ranking them second and third in the world respectively. Both whaling and sealing have become controversial, limiting the potential market for their products. As such, the only seal tannery in the country – Great Greenland in Qaqortoq – is heavily subsidized by the government [19] to maintain the livelihood of smaller communities which are economically dependent on the hunt. [22]
Reindeer or caribou are found in the northwest of the island, while muskoxen are found in the northeast and at Kangerlussuaq. Because the muskoxen's natural range favors the protected Northeast Greenland National Park, it is a less common object of hunting than in the past. Polar bear and reindeer hunting in Greenland still occur but are regulated to avoid endangering the populations.
Approximately half of total sales are conducted by KNI, the state-owned successor to the Royal Greenland Trade Department; its rural sales division Pilersuisoq; or its daughter company – which has been purchased by the Danish Dagrofa – Pisiffik. [19] The third major chain is the Brugsen association of cooperatives. [23]
Ivigtut used to be the world's premier source of natural cryolite, an important mineral in aluminum extraction, but the commercially viable reserves were depleted in the 1980s. Similarly, deposits of coal, diamonds, and many metals – including silver, nickel, platinum, copper, molybdenum, iron, niobium, tantalum, uranium, and rare earths – are known to exist, but not yet in commercially viable deposits. [24] Greenland's Bureau of Minerals and Petroleum is working to promote Greenland as an attractive destination for prospectors. [24] Improvements in technology and increases in mineral prices have led to some mines being reopened, such as the lead and zinc mine at Maarmorilik and the gold mine at Nalunaq. [25]
Greenland is starting to emerge as a chunk of territory rich with untapped resources as the castastrophe that is global warming chips at the ice shelf of the island. Substantial volumes of minerals are now within reach of geological land mapping technologies, according to research conducted by GlobalData, a natural resources business intelligence provider. [26]
At 70%, Greenland has one of the highest shares of renewable energy in the world, mostly coming from hydropower. [27] [28] [29]
While the Greenland Home Rule Government has primary sovereignty over mineral deposits on the mainland, [30] oil resources are within the domain of the Danish exclusive economic zone. Nonetheless, prospecting takes place under the auspices of NUNAOIL, a partnership between the two governments. Some geologists believe Greenland has some of the world's largest remaining oil resources: [31] in 2001, the U.S. Geological Survey found that the waters off north-eastern Greenland (north and south of the Arctic Circle) could contain up to 110 billion barrels (17×10 9 m3) of oil, [32] and in 2010 the British petrochemical company Cairns Oil reported "the first firm indications" of commercially viable oil deposits. [33] Nonetheless, all six wells drilled since the 1970s have been dry.
Greenland has offered eight license blocks for tender along its west coast by Baffin Bay. Seven of those blocks have been bid for by a combination of multinational oil companies and NUNAOIL. Companies that have participated successfully in the previous license rounds and have formed a partnership for the licenses with NUNAOIL are DONG Energy, Chevron, ExxonMobil, Husky Energy, and Cairn Energy. The area available known as the West Disko licensing round is of interest due to its relative accessibility compared to other Arctic basins, as the area remains largely free of ice and contains a number of promising geological leads and prospects from the Paleocene era.
Coal used to be mined at Qullissat but this has been suspended.
Electricity generation is controlled by the state-owned Nukissiorfiit. It is distributed at 220 V and 50 Hz and sockets of Danish type K are used. Electricity has historically been generated by oil or diesel power plants, even though there is a large surplus of potential hydropower. Because of rising oil prices, there is a program to build hydro power plants. Since the success of the 1993 Buksefjord dam, – whose distribution path to Nuuk includes the Ameralik Span – the long-term policy of the Greenland government is to produce the island's electricity from renewable domestic sources. A third turbine at Buksefjord brought its capacity up to 45 MW in 2008; in 2007, a second, 7.2 MW dam was constructed at Qorlortorsuaq; and in 2010, a third, 15 MW dam was constructed at Sisimiut. There is a plan for an Aluminium smelter plant, which requires multiple large (total 600-750 MW) hydropower plants. [34] Domestic heating is provided by electricity at locations where there is a hydro power plant.
Tourism is limited by the short summers and high costs. Access is almost exclusively by air, mainly from Scandinavia and Iceland. Some tourists arrive by cruise ship (but they don't spend much locally, since the ship provides accommodation and meals). There have been tests with direct flights from the US East Coast from 2007 to 2008, but these were discontinued. The state-owned tourism agency Visit Greenland has the web address Greenland.com. [35]
Tourism increased significantly between 2015 and 2019, with the number of visitors increasing from 77,000 per year to 105,000. [36] One source estimated that in 2019 the revenue from this aspect of the economy was about 450 million kroner (US$67 million). Like many aspects of the economy, this slowed dramatically in 2020, and into 2021, due to restrictions required as a result of the COVID-19 pandemic; [37] one source describes it as being the "biggest economic victim of the coronavirus". (The overall economy did not suffer too severely as of mid 2020, thanks to the fisheries.) [38] Visitors would begin arriving again in late 2020 and early 2021. Greenland's goal is to develop it "right" and to "build a more sustainable tourism for the long run". [39]
Agriculture is of little importance in the economy but due to climate change – in southern Greenland, the growing season averages about three weeks longer than a decade ago [40] – which has enabled expanded production of existing crops[ clarification needed ]. At present[ when? ], local production accounts for 10% of potatoes consumption in Greenland, but that is projected to grow to 15% by 2020. Similarly, it has enabled new crops like apples, strawberries, [41] broccoli, cauliflower, cabbage, and carrots [40] to be grown and for the cultivated areas of the country to be extended [42] although even now only about 1% of Greenland is considered arable. [43] Expanded production is subsidized by the government through purchase guarantees by the state-owned Neqi A/S grocery store chain.
The only forest in Greenland is in the Qinngua Valley near Nanortalik. It is protected and not used for timber production.
Animal husbandry consists mainly of sheep farming, with free-grazing flocks. Modern sheep farming methods were introduced in the early 20th century, with the first farm built in 1906. [44] The farms provide meat for local consumption and wool mainly for export. Some 20,000 lambs are slaughtered annually in Narsaq by the state-owned Neqi A/S. [19] The lack of private land ownership rights on Greenland [45] forces farmers to jointly agree to terms of land usage. In the south, there is also a small cattle farm. [46] [47]
Reindeer herding has been introduced to Greenland in waves since 1952. Supervision by Scandinavian Sami ended in 1978 and subsequent results were dismal. Repeated attempts in mid-west Greenland in the 1980s and the 1990s failed due to the immobility of the herds, which destroyed their forage. [48] In 1998, the remaining herd was sold to the Nuuk municipality and removed through hunting. At that point, only one Greenlander was still a deerherd; the rest – about 20 people – were still hired Norwegian Sami. Although the conclusion was drawn that reindeer herding was incompatible with the local culture, the southern herds continue to prosper. In 2008, there was still a strong herd at the Isortoq Reindeer Station [49] maintained by the Icelander Stefán Magnússon and Norwegian Ole Kristiansen.
Greenland is a North American island autonomous territory of the Kingdom of Denmark. It is the larger of two autonomous territories within the Kingdom, the other being the Faroe Islands; the citizens of both territories are full citizens of Denmark. As Greenland is one of the Overseas Countries and Territories of the European Union, citizens of Greenland are European Union citizens. The capital and largest city of Greenland is Nuuk. Greenland lies between the Arctic and Atlantic oceans, east of the Canadian Arctic Archipelago. It is the world's largest island, and is the location of the northernmost point of land in the world – Kaffeklubben Island off the northern coast is the world's northernmost undisputed point of land, and Cape Morris Jesup on the mainland was thought to be so until the 1960s.
The gross domestic product (GDP) of Niger was $16.617 billion US dollars in 2023, according to official data from the World Bank. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
The history of Greenland is a history of life under extreme Arctic conditions: currently, an ice sheet covers about eighty percent of the island, restricting human activity largely to the coasts. The first humans are thought to have arrived in Greenland around 2500 BCE. Their descendants apparently died out and were succeeded by several other groups migrating from continental North America. There has been no evidence discovered that Greenland was known to Norsemen until the ninth century CE, when Norse Icelandic explorers settled on its southwestern coast. The ancestors of the Greenlandic Inuit who live there today appear to have migrated there later, around the year 1200, from northwestern Greenland.
Denmark and the former real union of Denmark–Norway had a colonial empire from the 17th through to the 20th centuries, large portions of which were found in the Americas. Denmark and Norway in one form or another also maintained land claims in Greenland since the 13th century, the former up through the twenty-first century.
The culture of Greenland has much in common with Greenlandic Inuit tradition, as the majority of people are descended from Inuit. Many people still go ice fishing and there are annual dog-sled races in which everyone with a team participates.
The Greenland Sea is a body of water that borders Greenland to the west, the Svalbard archipelago to the east, Fram Strait and the Arctic Ocean to the north, and the Norwegian Sea and Iceland to the south. The Greenland Sea is often defined as part of the Arctic Ocean, sometimes as part of the Atlantic Ocean. However, definitions of the Arctic Ocean and its seas tend to be imprecise or arbitrary. In general usage the term "Arctic Ocean" would exclude the Greenland Sea. In oceanographic studies the Greenland Sea is considered part of the Nordic Seas, along with the Norwegian Sea. The Nordic Seas are the main connection between the Arctic and Atlantic oceans and, as such, could be of great significance in a possible shutdown of thermohaline circulation. In oceanography the Arctic Ocean and Nordic Seas are often referred to collectively as the "Arctic Mediterranean Sea", a marginal sea of the Atlantic.
Narsaq is a town in the Kujalleq municipality in southern Greenland. The name Narsaq is Kalaallisut for "Plain", referring to the shore of Tunulliarfik Fjord where the town is located.
Sisimiut, formerly known as Holsteinsborg, is the capital and largest city of the Qeqqata municipality, the second-largest city in Greenland, and the largest Arctic city in North America. It is located in central-western Greenland, on the coast of Davis Strait, approximately 320 km (200 mi) north of Nuuk.
Nuussuaq, formerly Kraulshavn, is a settlement in Avannaata municipality in northwestern Greenland. It is the only mainland settlement in the Upernavik Archipelago, located near the western tip of the Nuussuaq Peninsula, on the northern coast of Sugar Loaf Bay, an indentation of Baffin Bay.
Reindeer hunting in Greenland is of great importance to the Greenlandic Inuit and sports hunters, both residents and tourists. Reindeer (caribou) are an important source of meat, and harvesting them has always played an important role in the history, culture, and traditions of the Greenlandic Inuit. Controlled hunting is important for the welfare of reindeer, the quality of life for Inuit, both as food, and part of their culture and Greenlandic culture in general, and the preservation of tundra grazing areas. Therefore, scientific research is regularly performed to determine the quotas needed to maintain a proper ecological balance.
The following outline is provided as an overview of and topical guide to Greenland:
Royal Arctic Line A/S (RAL) or Royal Arctic is a seaborne freight company in Greenland, wholly owned by the Government of Greenland. It was formed in 1993, and is headquartered in Nuuk.
Royal Greenland A/S is a fishing company in Greenland, spun off from Kalaallit Niuerfiat in 1990 but still wholly owned by the Government of Greenland. The company operates in a number of towns and settlements in Greenland, with 20 fish processing plants and ship bases of local subsidiary units. Some of the processing plants were closed between 2007 and 2009. Royal Greenland had an annual net profit of DKK 335 million before tax in 2016.
Pilersuisoq is a chain of all-purpose general stores in Greenland, a major division of the state-owned KNI conglomerate. Like its parent company, it is based in Sisimiut (Holsteinsborg), the second-largest town in Greenland.
KNI A/S or Greenland Trade is a trading conglomerate in Greenland. It is the successor to the Royal Greenland Trading Department, which controlled the government of Greenland itself from 1774 to 1908 and possessed a monopoly on Greenlandic trade from 1776 to 1950. Today, the company remains a major component of the Greenlandic economy and remains fully owned by the local government. The company is based in Sisimiut (Holsteinsborg), Greenland's second-largest city, located in mid-western Greenland's Qeqqata Municipality.
Greenlandic independence is a political ambition of some political parties, advocacy groups, and individuals of Greenland, an autonomous territory within the Kingdom of Denmark, to become an independent sovereign state.
The Royal Greenland Trading Department was a Danish state enterprise charged with administering the realm's settlements and trade in Greenland. The company managed the government of Greenland from 1774 to 1908 through its Board of Managers in Copenhagen and a series of Royal Inspectors and Governors in Godthaab and Godhavn on Greenland. The company was headquartered at Grønlandske Handels Plads at Christianshavn.
The Greenland Provincial Council was the provincial government of Greenland between 1950, when it was formed from the union of the earlier North and South Greenland Provincial Councils, and 1 May 1979, when it was replaced by the Greenland Home Rule Government and its Parliament.
The parsissaet, were a form of local council in Greenland between 1857 and 1911. They were created by the Royal Greenland Trading Department (KGH).