Norway: Economy Overview
29 January 2010by Ina Dimireva -- last modified 17 November 2010
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-majority-owned enterprises.
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Economy Overview
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 2.1% in 2008, and the economy contracted by 1% in 2009 as a result of the slowing world economy and the drop in oil prices.
GDP (purchasing power parity):
$267.4 billion (2009 est.)
country comparison to the world: 41
$271.4 billion (2008 est.)
$266.1 billion (2007 est.)
note: data are in 2009 US dollars
GDP (official exchange rate):
$383 billion (2009 est.)
GDP - real growth rate:
-1.5% (2009 est.)
country comparison to the world: 139
2% (2008 est.)
5.4% (2007 est.)
GDP - per capita (PPP):
$57,400 (2009 est.)
country comparison to the world: 5
$58,400 (2008 est.)
$57,500 (2007 est.)
note: data are in 2009 US dollars
GDP - composition by sector:
agriculture: 2.1%
industry: 39.5%
services: 58.3% (2009 est.)
Labor force:
2.59 million (2009 est.)
country comparison to the world: 110
Labor force - by occupation:
agriculture: 2.9%
industry: 21.1%
services: 76% (2008)
Unemployment rate:
3.2% (2009 est.)
country comparison to the world: 26
2.6% (2008 est.)
Investment (gross fixed):
21.4% of GDP (2009 est.)
country comparison to the world: 77
Budget:
revenues: $208.6 billion
expenditures: $171.3 billion (2009 est.)
Inflation rate (consumer prices):
2.1% (2009 est.)
country comparison to the world: 76
3.8% (2008 est.)
Commercial bank prime lending rate:
4.28% (31 December 2009)
country comparison to the world: 124
7.28% (31 December 2008)
Stock of domestic credit:
$NA
Agriculture - products:
barley, wheat, potatoes; pork, beef, veal, milk; fish
Industries:
petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing
Industrial production growth rate:
-2.9% (2009 est.)
country comparison to the world: 98
Oil - production:
2.35 million bbl/day (2009 est.)
country comparison to the world: 14
Natural gas - production:
103.5 billion cu m (2009 est.)
country comparison to the world: 6
Current account balance:
$55.32 billion (2009 est.)
country comparison to the world: 5
$88.34 billion (2008 est.)
Exports:
$122.8 billion (2009 est.)
country comparison to the world: 30
$173.6 billion (2008 est.)
Exports - commodities:
petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish
Exports - partners:
Imports:
$65.84 billion (2009 est.)
country comparison to the world: 36
$85.95 billion (2008 est.)
Imports - commodities:
machinery and equipment, chemicals, metals, foodstuffs
Imports - partners:
Debt - external:
$548.1 billion (30 June 2009)
country comparison to the world: 18
$475.9 billion (31 December 2008)
note: Norway is a net external creditor
Stock of direct foreign investment - at home:
$123.3 billion (31 December 2009 est.)
country comparison to the world: 27
$121.5 billion (31 December 2008 est.)
Stock of direct foreign investment - abroad:
$194.7 billion (31 December 2009 est.)
country comparison to the world: 18
$171.2 billion (31 December 2008 est.)
Exchange rates:
Norwegian kroner (NOK) per US dollar - 6.3988 (2009), 5.6361 (2008), 5.86 (2007), 6.418 (2006), 6.445 (2005)
Source: CIA - The World Factbook