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The Economy of Norway

Norwegian Economy

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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 the petroleum sector, which accounts for nearly half of exports and over 30% of state revenue. Norway is the world's third-largest gas exporter; its position as an oil exporter has slipped to seventh-largest as production has begun to decline. 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. In anticipation of eventual declines in oil and gas production, Norway saves almost all state revenue from the petroleum sector in a sovereign wealth fund. After lackluster growth of less than 1.5% in 2002-03, GDP growth picked up to 2.5-6.2% in 2004-07, partly due to higher oil prices. Growth fell to 2.3% in 2008 as a result of the slowing world economy and the drop in oil prices.

GDP:

GDP - real growth rate: 1.8% (2008 est.) 3.7% (2007 est.) 2.5% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 2.4% industry: 40.7% services: 56.8% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 3.9% highest 10%: 23.4% (2000)

Distribution of family income - Gini index: 25 (2008)

Inflation rate (consumer prices):

Labor force: 2.59 million (2008 est.)

Labor force - by occupation: agriculture: 2.9% industry: 21.1% services: 76% (2008)

Unemployment rate: 2.6% (2008 est.)

Budget: revenues: $283.7 billion expenditures: $197 billion (2008 est.)

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

Industrial production growth rate: 0.2% (2008 est.)

Electricity - production: 142.7 billion kWh (2008 est.)

Electricity - production by source:

Electricity - consumption: 128.8 billion kWh (2008 est.)

Electricity - exports: 17.3 billion kWh (2008 est.)

Electricity - imports: 3.45 billion kWh (2008 est.)

Oil - production: 2.565 million bbl/day (2007 est.)

Oil - consumption: 224,500 bbl/day (2007 est.)

Oil - exports: 2.31 million bbl/day (2007)

Oil - imports: 92,650 bbl/day (2005)

Oil - proved reserves: 6.865 billion bbl (1 January 2008 est.)

Natural gas - production: 99.3 billion cu m (2008 est.)

Natural gas - consumption: 6.5 billion cu m (2007 est.)

Natural gas - exports: 85.7 billion cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 2.241 trillion cu m (1 January 2008 est.)

Agriculture - products: barley, wheat, potatoes; pork, beef, veal, milk; fish

Exports: $177.6 billion f.o.b. (2008 est.)

Exports - commodities: petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish

Exports - partners: UK 26.3%, Germany 12.3%, Netherlands 10.2%, France 8%, Sweden 6.5%, US 6.2% (2007)

Imports: $93.21 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, chemicals, metals, foodstuffs

Imports - partners: Sweden 14.7%, Germany 13.6%, UK 6.9%, Denmark 6.4%, China 6.1%, US 4.8%, Canada 4.3% (2007)

Debt - external: $469.1 billion; note - Norway is a net external creditor (30 June 2007)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Norwegian kroner (NOK) per US dollar - 5.6361 (2008), 5.86 (2007), 6.418 (2006), 6.445 (2005), 6.7327 (2004)

Fiscal year: