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The economic situation of the Falkland Islands (Islas Malvinas), dominated by the fishing sector, is threatened by the failure of the Loligo squid season. In this context, the government is exploring the oil industry as an alternative, and a possible new path is opening in the dialogue with the Milei administration.
The economic situation of the Falkland Islands, dominated by the fishing sector, is threatened by the failure of the Loligo squid season. In this context, the government is exploring the oil industry as an alternative, and a possible new path is opening in the dialogue with the Milei administration.
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Source: Penguin News
The Falkland Islands' economy remains overwhelmingly dominated by the fishing sector, with a potential financial impact looming from the canceled Loligo squid season. This has raised concerns about the nation's reliance on a single, volatile industry.
According to a report in the Penguin News on August 15, the Falkland Islands' National Accounts for 2014–2024 reveal that fishing and aquaculture accounted for a staggering 58.3% of the nominal GDP in 2024. The industry contributed £168 million to the GDP, a slight increase from £164.2 million in 2023.
 However, the accounts do not yet reflect the full impact of the second Loligo season, which was canceled in 2024. The financial repercussions of this will only become visible in the 2025 figures.
Roddy Cordeiro, Head of Policy, commented on the situation, stating that the GDP is a very broad measure and that the accounts correspond to the 2024 calendar year. "It is difficult to predict with any accuracy what the impact of that will be in the 2025 accounts, but obviously the fishing sector is the largest contributor to GDP, so there will likely be a noticeable impact," he said.
Other key economic figures for 2024 include:
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Public administration and defense, education, human health, and social work activities: The second-largest contributor at 12.5% of GDP.
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Wholesale and retail trade, transportation and storage, accommodation, and food service activities: The third-largest contributor at 10.6% of GDP.
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The overall nominal GDP grew by 2.7% from 2023, reaching £288 million compared to £280.4 million the previous year.
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GDP per capita grew to £86,050 in 2024, up £2,109 from 2023, based on an estimated resident population of 3,347.
The report, which was presented to the Executive Council on August 5, noted that the largest GDP contributors are resource-based and have shown "a great degree of volatility in the past." When excluding the fishing and oil industries, non-resource GDP showed a compounded average growth rate of 4.2% over the previous 10 years.
The FIG explore oil industry as an alternative to fishing dependence
The Falkland Islands Government (FIG) is considering the oil business as a strategic alternative to mitigate the risks associated with the fishing sector's dominance. This initiative has gained new traction with recent presentations outlining its potential economic benefits.
Source: Penguin News
A little over a week ago, a public presentation detailed the significant investments and job opportunities that an oil project could bring. According to figures presented by Navitas' consultant, Hatch, during a public meeting on July 31, peak oil production is projected to generate £181 million in corporation tax and an additional £99 million in royalties for the FIG annually.
Photo: Rockhopper Exploration plc
Meanwhile, the new administration of President Milei has clearly stated its intention to change foreign policy and the relationship with the islanders. The issues of fishing and oil activity may serve as a platform to seek new alternatives, abandoning the failed diplomatic and military options of the past.
Following Argentina's internal elections in September and October, and in the described context, it could be the opportune moment for Argentina not only to launch a new structure for its problematic and stagnant fishing sector but also to use this new model to seek solutions and commercial opportunities to problems such as fishing on the 'extended platform' beyond the 200 miles, operations in 'international' waters at the 201-mile limit, the lack of regulation and control over migratory species, and the situation of fishing operations under the administration of the FIG and the CCAMLR.
Click on the image to enlarge it
A modern framework that benefits both parties is possible with a new vision and attitude. There are ideas and proposals, but those responsible for the Argentine team need to show a willingness to dialogue and propose ideas that overcome the current reality.
Andres Loubet-Jambert
President and Co-founder of FIS (Fish Info & Services Co.Ltd, Japan) | Publisher Seafood Media Group
[email protected]
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