Allo' Expat Norway - Connecting Expats in Norway
Main Homepage
Allo' Expat Norway Logo


Subscribe to Allo' Expat Newsletter
 
Check our Rates
   Information Center Norway
Norway General Information
 
History of Norway
Norway Culture
Norway Cuisine
Norway Geography
Norway Population
Norway Government
Norway Economy
Norway Communications
Norway Transportations
Norway Military
Norway Transnational Issues
Norway Healthcare
Norway People, Language & Religion
Norway Expatriates Handbook
Norway and Foreign Government
Norway General Listings
Norway Useful Tips
Norway Education & Medical
Norway Travel & Tourism Info
Norway Lifestyle & Leisure
Norway Business Matters
  Sponsored Links


Check our Rates

Norway Economy
 
 
 

General

The Norwegian economy is an example of mixed economy, featuring a combination of free market activity and large government ownership.

Almost three quarters of Norway's land is unproductive; less than 4% is under cultivation and the country imports over 50% of its food. The vast mountain pastures are used for the grazing of cattle and sheep, and, in the north, for reindeer raising. Barley, wheat and potatoes are grown. About one quarter of Norway is forested; timber is a chief natural resource and is the basis for one of the main industries. The beautiful Norwegian fjords and the midnight sun of the far north attract many tourists. Fishing (notably of cod, herring and mackerel) is important, and fresh, canned and salted fish are exported.

The country's chief industries are petroleum and natural gas production, shipping and trading. Since the discovery of petroleum in the Ekofisk field in 1969, the petroleum and natural gas industries have become vital to Norway's economy, bringing increased employment, but also increased inflation and a vulnerability to fluctuations in the world petroleum market (most of the oil and gas is exported). Other mineral resources include iron ore, copper, lead, zinc, titanium, pyrites and nickel. Aluminum, ferro-alloys and semifinished steel are produced.

Almost all of Norway's electricity is supplied by hydroelectric power, and the country exports hydro-electricity as well. Food processing, shipbuilding and the manufacture of pulp and paper products, metals, chemicals and textiles are important to the economy. The great Norwegian merchant fleet carries a large part of the world's trade. Petroleum and petroleum products, machinery and equipment, metals, chemicals, ships and fish are the main exports; imports include capital goods, chemicals, metals and foodstuffs. The chief trading partners are Great Britain, Germany, Sweden and France.

In 2006, Norway possesses the second highest GDP per-capita and third highest GDP (PPP) per-capita in the world, and has maintained 1st place in the world in the UNDP Human Development Index (HDI) for the fifth consecutive year. Cost of living is about 30% higher in Norway than in the US, and 25% higher than the UK.

Overview

Economy - overview :
The Norwegian economy is a prosperous bastion of welfare capitalism, featuring a combination of free market activity and government intervention. The government controls key areas, such as the vital petroleum sector, through large-scale state enterprises. The country is richly endowed with natural resources – petroleum, hydropower, fish, forests, and minerals – and is highly dependent on its oil production and international oil prices, with oil and gas accounting for one-third of exports. Only Saudi Arabia and Russia export more oil than Norway. Norway opted to stay out of the EU during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizably to the EU budget. The government has moved ahead with privatisation. Although Norwegian oil production peaked in 2000, natural gas production is still rising. Norwegians realise that once their gas production peaks they will eventually face declining oil and gas revenues; accordingly, Norway has been saving its oil-and-gas-boosted budget surpluses in a Government Petroleum Fund, which is invested abroad and now is valued at more than $250 billion. After lackluster growth of less than 1% in 2002-03, GDP growth picked up to 3-5% in 2004-07, partly due to higher oil prices. Norway's economy remains buoyant. Domestic economic activity is, and will continue to be, the main driver of growth, supported by high consumer confidence and strong investment spending in the offshore oil and gas sector. Norway's record high budget surplus and upswing in the labour market in 2007 highlight the strength of its economic position going into 2008.

GDP (purchasing power parity) :
$257.4 billion (2007 est.)


See more information on the next page... (next)


 

 
 

   



 


copyrights © AlloExpat.com
2015 | Policy