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flag Norway Norway: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

After fifteen years of a strong growth (more than 5% in average annually), Norway has been touched by the global economy recession; however, the decline in production was less severe than in other countries.  In 2009, the growth was slightly negative (-1.4%), a limited contraction by the rebound of oil prices.  The growth rate has slightly increased in 2010, stimulated by the relaunching measures, household consumption and private investment.  This slow revival trend should continue in 2011. 

Even though, Norway strongly depends of oil prices, the Norwegian economy is very solid and its perspectives are positive.  The government has progressively suppressed the exceptional measures taken during the crisis in order to prevent overheating its economy.  As it was announced on the budget 2011, the priority is to reduce the public deficit (without including oil). Confronting a long-term challenge, which is the ageing of the population, the government has also introduced a reform on the retirement insurance system. 

Norway is a rich country, which has the second highest GNP per capita in the world (USD 55,600 in terms equivalent to purchasing power).  The country also ranks second place in the UNDP's Human Development Index. Contrary to the initial fears, unemployment was controlled during the crisis and it has been stable at a very low rate (3.5% of the active population).

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 370.67412.99479.30e495.55508.89
GDP (Constant Prices, Annual % Change) -1.70.31.7e2.52.2
GDP per Capita (USD) 76,54384,144e96,59198,683100,236
General Government Balance (in % of GDP) -6.0-6.6-6.5-6.5-6.6
General Government Gross Debt (in % of GDP) 55.4e55.4e55.4e55.455.4
Inflation Rate (%) 2.22.41.7e2.22.5
Unemployment Rate (% of the Labor Force) 3.23.63.63.53.5
Current Account (billions USD) 47.8151.28e67.07e63.2962.67
Current Account (in % of GDP) 12.912.414.0e12.3-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture contributes to about 2%  of the GNP. Fishing is a very important activity, Norway is one of the biggest exporters of fish in the world. Government subsidies for agriculture are very considerable.

Norway's economy is essentially based upon the exploitation of its natural and energy resources  (oil, gas, hydroelectric power, forests and minerals).  Oil production dominates the economy, accounting for nearly a quarter of the GNP. Norway is also a major producer and exporter of natural gas.  There is a consensus among the political parties to save oil and gas revenues for future generations, to the point where Norway has one of the largest sovereign wealth funds in the world.  Shipbuilding, metals, pulp and paper, chemical industries, machinery and electrical equipment are Norway's main manufacturing industries. Norway has one of the biggest and most modern fleet in the world. 

The services sector is highly developed and accounts for more than three-fourths of the GNP.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.7 20.2 76.9
Value Added (in % of GDP) 1.2 40.4 58.3
Value Added (Annual % Change) -5.1 -2.5 -0.1

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Norwegian Krone (NOK) - Average Annual Exchange Rate For 1 USD 6.415.865.646.296.04

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Norway on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
70.3/100
Position:
Mostly free
World Rank:
29/179
Regional Rank:
16/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Norway has a widely open economy. Trade represented almost 75% of the GDP in 2009. 

Traditionally, the country exports energy-intensive products and imports technology-intensive products. Its main trade partners are the countries of the European Union. 

The country is the third largest exporter of oil in the world, the largest supplier of natural gas to the the countries of  Western Europe, the largest exporter of fish in the world.  Overall, Norway is classified among the 30 largest exporters of the world.  The industrial products (ships, oil platforms, etc.) constitute nearly 10% of total exports.  Norway mainly imports manufactured merchandise (machines, transporters, information technology) which accounts for 40% of its total imports. 

The surplus in the trade balance is enormous.  The country's trade balance is structurally positive and this trend should continue during the next following years.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 64,26180,29790,29369,29276,902
Exports of Goods (million USD) 122,208136,354172,621120,880131,683
Imports of Services (million USD) 31,13538,75343,99036,29140,639
Exports of Services (million USD) 33,05740,19644,81038,26140,191
Imports of Goods and Services (Annual % Change) 8.48.64.3-11.4-
Exports of Goods and Services (Annual % Change) 0.42.8---
Imports of Goods and Services (in % of GDP) 28.430.429.527.6-
Exports of Goods and Services (in % of GDP) 46.445.848.642.4-
Trade Balance (million USD) 58,86658,32185,62048,81958,391
Trade Balance (Including Service) (million USD) 60,66659,74985,85350,61255,283
Foreign Trade (in % of GDP) 74.876.278.169.9-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United Kingdom 26.7%
Netherlands 12.1%
Germany 11.4%
Sweden 7.0%
France 6.6%
See More Countries 36.2%
Main Suppliers
(% of Imports)
2010
Sweden 14.1%
Germany 12.4%
China 8.5%
Denmark 6.3%
United Kingdom 5.9%
See More Countries 52.9%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 36.3%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 23.4%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.0%
Fish, fresh or chilled (excl. fish fillets and...Fish, fresh or chilled (excl. fish fillets and other fish meat of heading 0304) 3.3%
Unwrought aluminiumUnwrought aluminium 2.7%
See More Products 30.3%
Main Imports
(% of Imports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.6%
Cruise ships, excursion boats, ferry-boats, cargo...Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods 3.7%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.4%
Nickel mattes, nickel oxide sinters and other...Nickel mattes, nickel oxide sinters and other intermediate products of nickel metallurgy : 2.9%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.0%
See More Products 82.4%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Agriculture and Food
Ministry of Trade and Industry
Ministry of Foreign Affairs
Statistical Office
Central Office for Statistics
Central Bank
Central Bank of Norway
Stock Exchange
Oslo Børs
Search Engines
Kvasir
Origo
Yahoo! Norge
Economic Portals
Portals to the World: Norway
Bedin - Establishing and running business in Norway

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Political Outline

Executive Power
The constitution grants executive powers to the King (the head of state), but these are exercised by the cabinet. King serves a ceremonial role with some reserve powers. After elections the majority leader is usually appointed Prime minister (the head of the cabinet) by the monarch with the approval of the parliament.
Legislative Power
A modified unicameral parliament or Storting. For certain purposes the parliament divides itself into two chambers called Lagting and Odelsting, but the practice will be abolished after the general elections in 2009 making Storting fully unicameral. Members are elected for four-year terms according to a system of proportional representation.
Main Political Parties
- DNA (Norwegian Labour Party) - Social democrats
- FrP (Progress Party) – Libertarian right-wing party
- Høyre (Conservative Party) - Conservatives
- Venstre (Liberal Party) – Social liberals
- KrF (Christian Democratic Party)
- SV(Socialist Left Party) - Socialists.
- SP (Centre Party) - Centrist and agrarian party.

Labour Party, Socialist Left and the Centre Party form the current cabinet. Coalition governments of several parties are typical in Norway.

Current Political Leaders
King: HARALD V (since January 1991) - hereditary
Prime Minister: Jens STOLTENBERG (since October 2005) – DNA
Next Election Dates
Parliamentary: September 2013
 

Indicator of Freedom of the Press

World Rank:
3/178
Evolution:
1 place up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012