Economy of Greenland

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. The fish processing industry is almost entirely centered on Royal Greenland, the world's largest retailer of cold-water shrimp.

Whaling and seal hunting were once traditional mainstays of Greenland's economy. Greenlanders still kill an estimated 170,000 seals a year and 175 whales a year, 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 to maintain the livelihood of smaller communities which are economically dependent on the hunt.

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. The third major chain is the Brugsen association of cooperatives.

Greenland's Bureau of Minerals and Petroleum is working to promote Greenland as an attractive destination for prospectors. 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. Greenland is expected to be one of the world's next great mining frontiers as global warming starts to uncover precious metals from the frozen surroundings. 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.

At 70%, Greenland has one of the highest shares of renewable energy in the world, mostly coming from hydropower. While the Greenland Home Rule Government has primary sovereignty over mineral deposits on the mainland, oil resources are within the domain of the Danish exclusive economic zone. 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.

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). The state-owned tourism agency Visit Greenland has the web address Greenland.com. Tourism increased significantly between 2015 and 2019, with the number of visitors increasing from 77,000 per year to 105,000. One source estimated that in 2019 the revenue from this aspect of the economy was about 450 million kroner (US$67 million).

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 - which has enabled expanded production of existing crops. At present, 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, broccoli, cauliflower, cabbage, and carrots to be grown and for the cultivated areas of the country to be extended although even now only about 1% of Greenland is considered arable. Expanded production is subsidized by the government through purchase guarantees by the state-owned Neqi A/S grocery store chain.

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. The farms provide meat for local consumption and wool mainly for export.