Greenland’s Economy Depends on Fishing and Danish Subsidies

Greenland’s economy depends largely on the fishing industry as well as Danish subsidies. According to Statistics Greenland data, annual fishery exports in 2023 came to around 5.3 billion Danish Kroner (DKK), or 23 percent of Greenland’s GDP. Meanwhile, government spending came to DKK 9.6 billion, or 42 percent of GDP. Just under half of the latter sum was funded by an annual Danish government grant, which amounted to approximately 20 percent of Greenland’s GDP.

While the country’s population is largely in favor of independence from Copenhagen, Denmark remains important for Greenland's economy. According to a white paper by the European Parliamentary Research Service, the Danish government's additional expenses related to Greenland amounted to around €204 million in 2023. This covers resources such as police services, military and defense, prisons, courts and environmental protection. Greenland receives a further €17.29 million each year from the EU both for access to the island's Exclusive Economic Zone (EEZ) as well as in support of its fisheries policy.

At the same time, according to an analysis by Nordic Insights, Greenland has made significant progress towards reducing its dependency on the annual Danish block grant over the years. While the grant’s nominal value has grown from DKK 2.4 billion in 1994 to DKK 4.1 billion in 2023, its share of Greenland’s GDP has fallen from 30 percent in 2003 to 19 percent in 2021.