Since 1900 Faroe Islands' economy has gradually changed from agricultural (sheep raising) to fishing and fishing-related industries, including the export of dried or frozen cod. Another industry supporting the economy is the wool and knitting industry. The main harbour of Tórshavn and the airport on Vágar play an important role in import and export. Regular shipping services are with Iceland, Denmark, Iceland, and the Shetland Islands. In the mid-1990s, people immigrated to Denmark due to the economic crisis, but they returned to their home country during 1997–98.
Since 2000, the government has encouraged new information technology and other business projects in Tórshavn and the nearby regions to attract new investments. Globalisation too made Tórshavn its element by introducing Burger King in Tórshavn. Besides this, the islands have a very low unemployment rate as compared to other cities in Europe. This is because many youngsters relocate to Denmark and other countries for higher education and better opportunities.
In 2008 the Faroes offered a $52 million loan to Iceland. In 2009, two opposition parties introduced a bill to adopt the euro as the national currency, but it wasn't adopted.