Economy in Norway

Economy—overview: Norway is a prosperous bastion of welfare capitalism. The economy is modeled on a free market capitalist model, subject to varying levels of government regulation and intervention. The government controls key areas such as the vital petroleum sector (through large-scale state enterprises) and subsidizes agriculture and fishing, as well as areas with sparse resources. Norway maintains an extensive welfare system that helps propel public sector expenditures to more than 50% of GDP, paid for through one of the highest average tax levels in the world.

A small country with a high dependence on international trade, Norway is basically an exporter raw resources semiprocessed goods, with an abundance of small- and medium-sized firms, and is ranked among the major shipping nations. The country is richly endowed with natural resources—oil, hydropower, fish, forests and minerals—and is highly dependent on its petroleum sector. Only Saudi Arabia exports more oil than Norway.

Norway imports more than half its food. Norway opted to stay out of the EU during a referendum in November 1994. Economic growth in 1998 should be about the same as in 1997. Inflation probably will move up toward 3% because of tightness in labor markets. Despite their high per capita income—outstripped among major nations only by the US—and their generous welfare benefits Norwegians worry about that time in the 21st century when the oil and gas run out.

GDP: purchasing power parity—$120.5 billion (1997 est.)

GDP—real growth rate: 3.5% (1997 est.)

GDP—per capita: purchasing power parity—$27 400 (1997 est.)

GDP—composition by sector:

agriculture: 2.9%

industry: 34.7%

services: 62.4% (1991)

Inflation rate—consumer price index: 2% (1997 est.)

Labor force:

total: 2.13 million

by occupation: services 71% industry 23% agriculture forestry and fishing 6% (1993)

Unemployment rate: 2.6% (year end 1997)

Budget:

revenues: $48.6 billion

expenditures: $53 billion including capital expenditures of $NA (1994 est.)

Industries: petroleum and gas food processing shipbuilding pulp and paper products metals chemicals timber mining textiles fishing

Industrial production growth rate: 3% (1996 est.)

Electricity—capacity: 26.431 million kW (1995)

Electricity—production: 121.375 billion kWh (1995)

Electricity—consumption per capita: 26 547 kWh (1995)

Agriculture—products: oats other grains; beef milk; livestock output exceeds value of crops; among world's top 10 fishing nations; fish catch of 2.33 million metric tons in 1994

Exports:

total value: $49.3 billion (f.o.b. 1996)

commodities: petroleum and petroleum products 43% metals and products 11% foodstuffs (mostly fish) 9% chemicals and raw materials 25% natural gas 6.0% ships 5.4%

partners: EU 77.2% (UK 19.8% Germany 12.7% Netherlands 9.1% France 7.8% Sweden 9.8%) US 6.0% (1995)

Imports:

total value: $35.1 billion (c.i.f. 1996)

commodities: machinery and equipment and manufactured consumer goods 54% chemicals and other industrial inputs 39% foodstuffs 6%

partners: EU 71.0% (Sweden 15.4% Germany 13.8% UK 9.7% Denmark 7.5% Netherlands 4.4%) US 6.6% (1995)

Debt—external: $NA

Economic aid:

donor: ODA $1.014 billion (1993)

Currency: 1 Norwegian krone (NKr) = 100 oere

Exchange rates: Norwegian kroner (NKr) per US$1—7.4875 (January 1998) 7.0734 (1997) 6.4498 (1996) 6.3352 (1995) 7.0576 (1994) 7.0941 (1993)

Fiscal year: calendar yearabc