Norway Economy Profile 2008

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 privatization. Although Norwegian oil production peaked in 2000, natural gas production is still rising. Norwegians realize 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 labor market in 2007 highlight the strength of its economic position going into 2008.

GDP (purchasing power parity)

$257.4 billion (2007 est.)

GDP (official exchange rate)

$369.3 billion (2007 est.)

GDP - real growth rate

4.9% (2007 est.)

GDP - per capita (PPP)

$55,600 (2007 est.)

GDP - composition by sector

agriculture: 2.4%
industry: 42.9%
services: 54.7% (2007 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 3.9%
highest 10%: 23.4% (2000)

Inflation rate (consumer prices)

0.4% (2007 est.)

Investment (gross fixed)

19.2% of GDP (2007 est.)

Labor force

2.5 million (2007 est.)

Labor force - by occupation

agriculture: 4%
industry: 22%
services: 74% (1995)

Unemployment rate

2.4% (2007 est.)

Distribution of family income - Gini index

28 (2005)

Budget

revenues: $232.3 billion
expenditures: $158.4 billion (2007 est.)

Public debt

39.1% of GDP (2007 est.)

Industries

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

Industrial production growth rate

1% (2007 est.)

Electricity - production

135.8 billion kWh (2005)

Electricity - consumption

113.9 billion kWh (2005)

Electricity - exports

15.7 billion kWh (2005)

Electricity - imports

3.652 billion kWh (2005)

Oil - production

2.978 million bbl/day (2005 est.)

Oil - consumption

228,400 bbl/day (2005 est.)

Oil - imports

91,930 bbl/day (2004)

Oil - exports

3.018 million bbl/day (2004)

Oil - proved reserves

7.705 billion bbl (1 January 2006 est.)

Natural gas - production

83.44 billion cu m (2005 est.)

Natural gas - consumption

5.342 billion cu m (2005 est.)

Natural gas - exports

78.1 billion cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

2.288 trillion cu m (1 January 2006 est.)

Current Account Balance

$55.82 billion (2007 est.)

Agriculture - products

barley, wheat, potatoes; pork, beef, veal, milk; fish

Exports

$136.1 billion f.o.b. (2007 est.)

Exports - commodities

petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish

Exports - partners

UK 26.8%, Germany 12.3%, Netherlands 10.3%, France 8.2%, Sweden 6.4%, US 5.7% (2006)

Imports

$75.98 billion f.o.b. (2007 est.)

Imports - commodities

machinery and equipment, chemicals, metals, foodstuffs

Imports - partners

Sweden 15%, Germany 13.5%, Denmark 6.9%, UK 6.4%, China 5.7%, US 5.3%, Netherlands 4.1% (2006)

Reserves of foreign exchange and gold

$56.84 billion (2006 est.)

Debt - external

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

Stock of direct foreign investment - at home

$56.7 billion (2006 est.)

Stock of direct foreign investment - abroad

$104.7 billion (2006 est.)

Market value of publicly traded shares

$191 billion (2005)

Economic aid - donor

ODA, $2.954 billion (2006)

Currency (code)

Norwegian krone (NOK)

Exchange rates

Norwegian kroner per US dollar - 5.8396 (2007), 6.4117 (2006), 6.4425 (2005), 6.7408 (2004), 7.0802 (2003)

Fiscal year

calendar year