Norway Economy
Is Norway a wealthy country?
Norway boasts a robust and stable economy largely driven by its abundant natural resources, particularly oil and gas. It also has a well-developed welfare state and a high standard of living.
Oil and Gas Sector: Norway is one of the world's largest exporters of oil and natural gas, and its economy has historically been heavily reliant on revenues from these resources. However, given the volatility of commodity prices and the increasing focus on renewable energy, the government has been working to diversify the economy to reduce its dependency on oil and gas.
Welfare State: Norway has a comprehensive welfare system, including universal healthcare, free education (including higher education), and generous social security benefits. These programs contribute to a high standard of living and low levels of income inequality, but they also impose a significant financial burden on the government.
Strong Fiscal Position: Norway has accumulated substantial financial reserves thanks to its oil wealth, primarily through its Government Pension Fund Global (commonly known as the Norwegian Oil Fund). This sovereign wealth fund is one of the largest in the world and is designed to support future generations when oil revenues decline. The prudent management of these funds has helped Norway maintain a strong fiscal position.
Diversification Efforts: Norway has been actively diversifying its economy by recognizing the risks associated with overreliance on oil and gas. Investments have been made in renewable energy, technology, and aquaculture industries. The government has also encouraged innovation and entrepreneurship through various policies and initiatives.
Stable Macroeconomic Environment: Norway's macroeconomic environment is stable, characterized by low inflation, low unemployment rates, and sound fiscal management. The Norwegian krone (NOK) is a freely floating currency, and the country is committed to maintaining price stability.
Challenges and Concerns: Despite its economic strengths, Norway faces several challenges. These include an aging population, which puts pressure on the welfare system, and the need to transition to a more sustainable and environmentally friendly economy. Additionally, the country must navigate the geopolitical and economic uncertainties of Brexit, global trade tensions, and the ongoing COVID-19 pandemic.
International Trade: Norway is a member of the European Free Trade Association (EFTA) and the European Economic Area (EEA), which provides access to the European single market. It also has significant trade relationships with countries outside of Europe, particularly in the energy sector.
Norway Economy Data
What is the GDP of Norway?
| Currency Name and Code | Norwegian Krone (NOK) |
| GDP - Gross Domestic Product (PPP) | $342,060,000,000 (USD) |
| GDP - official exchange rate | $397,600,000,000 (USD) |
| GDP - real growth rate | 0.9% |
| GDP Per Capita | $68,400.00 (USD) |
| GDP by Sector- agriculture | 1.7% |
| GDP by Sector- Industry | 38.9% |
| GDP by Sector- services | 59.4% |
| GDP - composition, by end use |
household consumption: 42.8% government consumption: 22.8% investment in fixed capital: 22.9% investment in inventories: 5% exports of goods and services: 36.4% imports of goods and services: -29.9% |
| Inflation Rate | 2.4% |
| Labor Force | 2,590,000 |
| Labor Force By Occupation- agriculture | 2.2% |
| Labor Force By Occupation- industry | 20.2% |
| Labor Force By Occupation- services | 77.6% |
| Unemployment Rate | 3.6% |
| Fiscal Year | calendar year |
| Annual Budget | $226,800,000,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | 13.1% |
| Public Debt (% of GDP) | 36% |
| Taxes and other revenues - percent of GDP | 56.8% |
| Major Industries | petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing |
| Industrial Growth Rate | 0.3% |
| Agriculture Products | barley, wheat, potatoes; pork, beef, veal, milk; fish |
| Exchange Rate per US Dollar | Norwegian krone (NOK) |
| Commercial Bank Prime Lending Rate | 3.7% |