Recently released data shows that the Falkland Islands Gross Domestic Product (GDP) continues to be volatile: expanding considerably during some years and shrinking in others. For example, 2012, a year of intense hydrocarbons activity the per capita for a population of 2.562, in the books soared to £77.400.
The Falkland Islands National Accounts 2007-2012 figures recently produced by the Policy Unit explains, “previously this has been caused by volatility in the fisheries industry but for the period 2010-2012 oil and gas exploration added to this effect.”
Corporations directly engaged in oil and gas exploration related activities within the Falklands' territory were estimated to contribute annually about £50 to £55 million to GDP during this period.
Oil and gas exploration was also the main source of growth between 2009 and 2010. It is expected that the overall GDP figure has decreased significantly for 2013 as there was no oil and gas exploration drilling.
Looking at the GDP under the category ‘value added by type of activity’, fishing and aquaculture represents a massive 34.1% and oil and gas 24.9%. The increased share of ‘wholesale and retail trade, transportation and storage, accommodation and food service activities’ in GDP to 18.2% is mostly due to transportation and storage industry activities.
Per capita gross domestic product is based on a population of 2.562 persons and is £77.400 for 2012.
However gross national income figures that better reflect income earned by Falkland Islands residents will be released at a later date.
What does GDP measure? Gross Domestic Product measures the size of economic activity within a defined territory and time-frame. GDP should not be viewed as a measure of the wealth of a nation.
Wealth is something that is accumulated over time. Whilst GDP can give indications on how much new wealth is generated during a particular year, it does not consider how the new wealth is distributed.(Penguin News).-