[{"bbox": [96, 152, 1135, 393], "category": "Text", "text": "majority Canadian territory of Nunavut (and Canada generally) and is on par with the EU. The employment rate constitutes one indicator out of eighteen performance indicators that GoG applies to monitor progress¹⁸ in achieving overarching policy goals on sustainability and to tackle underlying structural socioeconomic problems. Market Employment in 2022 was in progress as judged by the number of registered jobseekers reaching its lowest level ever. Unemployment has fallen throughout the country for a number of years to 5% of the labour force (18-65 years of age) in 2022. There is a shortage of skilled labour, and the pressure on the labour market is very significant, especially in Nuuk and in larger cities to the north, where the need for foreign labour is increasing. According to population statistics for 2022, there were 1,928 foreign nationals living in Greenland, which is a doubling since 2008. In particular, the number of nationals from Thailand and the Philippines has increased."}, {"bbox": [96, 418, 1135, 710], "category": "Text", "text": "According to the Greenland Economic Council (GEC), the low unemployment rates indicate a particular need to attract foreign labour to avoid an overheating of the labour market. Structurally, the main challenge is the significant differences in the population's connection to the labour market, which are inextricably linked to education and vocational skills. Unemployment among people without education after primary school was 8.4 per cent in 2019 against 2.5 per cent for persons with vocational education and 0.4 per cent for people with a higher education. The objectives of the Greenland Education Programme – which benefits from a budget support programme by the EU - aims at raising the education seeking behaviour of the young population groups finalising primary and secondary school and efforts to reduce dependency of imported high skilled labour therefore still holds high relevance. According to the GEC Greenland's economy has managed comparatively well through the crises of recent years. The observed trend is expected to continue in 2023 with GEC forecasts on 0.8% growth in real GDP, cf. table above, in line with the forecasted EU average growth rate on 0.8% for 2023¹⁹."}, {"bbox": [96, 735, 1135, 843], "category": "Text", "text": "The economy grew by 1.2% in 2021 with economic progress continuing in 2022, due mainly to the construction activity related to the large airports construction projects in the cities of Nuuk and Ilulissat, complemented by contribution from the fishery sector. After some difficult years during the covid pandemic, tourism also rebounded strongly in 2022. The number of cruise ships visiting Greenland have increased significantly in 2022."}, {"bbox": [96, 858, 1135, 940], "category": "Text", "text": "The construction sector constitutes a significant indicator for the business cycle and economy in Greenland. Measured by number of jobs and production value, the construction sector is 3-4 times larger than the tourism industry."}, {"bbox": [96, 965, 1135, 1125], "category": "Text", "text": "In addition to the two main components, construction and consumption, the fisheries sector also contributed to economic growth. The export value for 2022 increased to DKK 5.92 million (EUR 0.79 million) from DKK 5.06 million (EUR 0.68 million) in 2021 (an increase of 17.2%). Exports of fish and fish products make up the bulk of revenue from abroad and are worth over DKK 5 billion (EUR 0.7 billion), equivalent to roughly 91% of total goods exported. This makes the economy very vulnerable to fluctuations in the fisheries sector, for example, with regard to prices and quota sizes."}, {"bbox": [96, 1150, 1135, 1311], "category": "Text", "text": "Inflationary pressure has been modest as compared to other countries. In July 2022, consumer prices were 2.2% higher than the previous year. In particular, energy prices have risen far less than in the rest of the world. The publicly owned company Polaroil also has obligation to supply oil and diesel products to Greenland via a service contract. Before Russia's war of aggression against Ukraine, price protection agreements were concluded for the period 2021 to 2023. The fixed prices for oil products have so far shielded the Greenland economy from price increases on energy products and accordingly the price protection agreements contribute to the modest inflation."}, {"bbox": [96, 1336, 1135, 1416], "category": "Text", "text": "GEC expects inflation just over 5% in 2023, the highest inflation rate observed since 2008-2009. Inflation in Greenland mainly related to international developments. With the expiry of the Polaroil price protection agreement on oil products at the end of 2023, GEC foresees uncertainty for the development of consumer prices in 2024."}, {"bbox": [96, 1443, 457, 1469], "category": "Section-header", "text": "## Assessment of macroeconomic policies"}, {"bbox": [96, 1469, 1135, 1522], "category": "Text", "text": "Greenland's economy has shown sound growth rates before the COVID-19 pandemic with 2.3% in 2019 and the economy also seem to be coping well with the challenges related to the disruptions in global economy related to"}, {"bbox": [86, 1548, 1144, 1597], "category": "Footnote", "text": "¹⁸ The GoG reports progress in these 18 performance indicators in the annual *Political Economic Report* and the indicators relate to the Growth and Sustainability Plan (2016)."}, {"bbox": [86, 1597, 1092, 1647], "category": "Footnote", "text": "¹⁹ Cf. https://economy-finance.ec.europa.eu/economic-forecast-and-surveys/economic-forecasts/winter-2023-economic-forecast-eu-economy-set-avoid-recession-headwinds-persist_en"}, {"bbox": [1027, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 13 of 36"}]