| Economy of Norway | |
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| Currency | 1 Norwegian krone (NOK) = 100 øre |
|---|---|
| Fiscal year | 1 January - 31 December |
| Trade organisations | OECD, WTO, European Economic Area and others |
| Statistics | |
| GDP (PPP) | $207. The krone ( sign: kr; code: NOK) is the Currency of Norway. The plural form is kroner. The krone ( sign: kr; code: NOK) is the Currency of Norway. The plural form is kroner. The European Economic Area ( EEA) came into being on 1 January 1994 following an agreement between member states of European Free Trade Association (EFTAthe The purchasing power parity ( PPP) theory uses the long-term equilibrium Exchange rate of two currencies to equalize their Purchasing power. 3 billion (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) (44th) |
| GDP growth | 3. There are three lists of Countries of the world sorted by their Gross domestic product (GDP (the value of all final goods and services produced within a nation 0% (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| GDP per capita | $47,800 (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) (PPP) (2nd) |
| GDP by sector | agriculture (2. The purchasing power parity ( PPP) theory uses the long-term equilibrium Exchange rate of two currencies to equalize their Purchasing power. This article includes three lists of Countries of the world sorted by their Gross domestic product (GDP at Purchasing power parity (PPP Per capita Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture 3%), industry (41. For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" 4%), services (56. A service is the non-material equivalent of a good. A service provision is an economic activity that does not result in Ownership, and this is what differentiates 3%) (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Inflation (CPI) | 2. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumer 3% (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Population below poverty line |
NA% (2006) |
| Labour force | 2. The poverty threshold, or poverty line, is the minimum level of Income deemed necessary to achieve an adequate Standard of living in a given country Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. 42 million (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Labour force by occupation |
agriculture (4%), manufacturing (22%), services (74%)(1995) |
| Unemployment | 3. Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture Manufacturing (from Latin manu factura, "making by hand" is the use of tools and labor to make things for use or sale A service is the non-material equivalent of a good. A service provision is an economic activity that does not result in Ownership, and this is what differentiates Year 1995 ( MCMXCV) was a Common year starting on Sunday. Events of 1995 Unemployment occurs when a person is available to work and currently seeking work but the person is without work. 5% (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Main industries | petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemical, timber, mining, textiles, fishing |
| External | |
| Exports | $122. Petroleum ( L petroleum, from Greek πετρέλαιον, lit This page is about the physical properties of gas as a state of matter Food is any substance usually composed primarily of Carbohydrates Fats water and/or Proteins that can be eaten or drunk by an See also Shipbuilding (song. Shipbuilding is the construction of Ships It normally takes place in a specialized facility known as a Wood pulp is a dry fibrous material prepared by chemically or mechanically separating the fibers which make up Wood. Paper is thin material mainly used for writing upon printing upon or packaging The M acro E xpansion T emplate A ttribute L anguage complements TAL, providing macros which allow the reuse of code across The chemical industry comprises the companies that produce industrial chemicals Lumber or timber is Wood in any of its stages from felling through readiness for use as structural Material for Construction, or Mining is the extraction of valuable Minerals or other geological materials from the earth usually (but not always from an Ore body A textile is a flexible material comprised of a network of natural or artificial Fibres often referred to as thread or Yarn. For the computer security term see Phishing. Fishing is the activity of catching Fish. 6 billion (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Export goods | petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish |
| Main export partners | UK 25. Petroleum ( L petroleum, from Greek πετρέλαιον, lit A machine is any device that uses Energy to perform some activity The M acro E xpansion T emplate A ttribute L anguage complements TAL, providing macros which allow the reuse of code across A chemical substance is a Material with a definite chemical composition. A ship /ʃɪp/ is a large vessel that floats on water Ships are generally distinguished from Boats based on size Fish are aquatic Vertebrate animals that are typically ectothermic (previously Cold-blooded) covered with scales, and equipped with two The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 5%, Germany 12. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 6%, Netherlands 9. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 9%, France 9. This article is about the country For a topic outline on this subject see List of basic France topics. 1%, US 6. The United States of America —commonly referred to as the 7%, Sweden 6. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 5% (2005) |
| Imports | $59. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. 9 billion (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Import goods | machinery and equipment, chemicals, metals, foodstuffs |
| Main import partners | Sweden 14. The chemical industry comprises the companies that produce industrial chemicals The M acro E xpansion T emplate A ttribute L anguage complements TAL, providing macros which allow the reuse of code across Food is any substance usually composed primarily of Carbohydrates Fats water and/or Proteins that can be eaten or drunk by an "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 6%, Germany 13. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 6%, Denmark 7. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe 3%, UK 6. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 8%, the People's Republic of China 5. Talk People's Republic of China) PEOPLE'S REPUBLIC OF CHINA ARTICLE GUIDELINES 5%, US 5%, France 4%(2005) |
| Public finances | |
| Public debt | 44. The United States of America —commonly referred to as the This article is about the country For a topic outline on this subject see List of basic France topics. 8% of GDP |
| Revenues | $195. 8 billion (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Expenses | $133. 1 billion (2006 est. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ) |
| Economic aid | $2. 20 billion (donor), 0. 87% of GDP (2004) [1] |
| Main data source: CIA World Factbook All values, unless otherwise stated, are in US dollars |
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Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been The term business cycle or economic cycle refers to the fluctuations of economic activity during its long term growth trend Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional The Industrial Revolution was a period in the late 18th and early 19th centuries when major changes in agriculture manufacturing and transportation had a profound effect on the Shipping has long been a support of Norway's export sector, but much of Norway's economic growth has been fueled by an abundance of natural resources, including petroleum exploration and production, hydroelectric power, and fisheries. Shipping is physical process of Transporting goods and Cargo. Economic growth is the increase in the amount of the goods and services produced by an economy over time Natural resources are naturally occurring substances that are considered valuable in their relatively unmodified ( natural) form Petroleum ( L petroleum, from Greek πετρέλαιον, lit Hydroelectricity is electricity generated by Hydropower, ie the production of power through use of the gravitational force of falling water For the fishing industry and the practice of fishing see Fishing. Agriculture and traditional heavy manufacturing have suffered relative decline compared to services and oil-related industries, and the public sector is among the largest in the world as a percentage of the overall gross domestic product. Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture Manufacturing (from Latin manu factura, "making by hand" is the use of tools and labor to make things for use or sale
Contents |
History
Pre-industrial revolution
Prior to the industrial revolution, Norway's economy was largely based on agriculture, timber, and fishing. Norwegians typically lived under conditions of considerable scarcity, though famine was rare. A famine is a widespread shortage of food that may apply to any Faunal species which phenomenon is usually accompanied by regional Malnutrition, Starvation Except for certain fertile areas in Hedemarken and Østfold, crops were limited to hardy grains, such as oats, rye, and barley; and livestock to sheep, goats, cattle, pigs, and some poultry; in places this was complemented with hunting. Hedmarken (since 2003 the official spelling decided by Klagenemnda for stedsnavnssaker) but also called Hedemarken) is a traditional district in the county is a county in southeastern Norway, bordering Akershus and southwestern Sweden ( Västra Götaland County and Värmland) while Oats redirects here It may mean either the common cereal oat discussed here or any cultivated or wild species of the Genus Avena. Rye ( Secale cereale) is a grass grown extensively as a grain and forage crop Barley ( Hordeum vulgare) is an annual Cereal Grain, which serves as a major animal Feed crop, with smaller amounts used for The domestic goat ( Capra aegagrus hircus) is a subspecies of goat Domesticated from the Wild goat of Southwest Asia and Eastern Europe Cattle, colloquially referred to as cows, are domesticated Ungulates a member of the Subfamily Bovinae of the family Pigs, also called hogs or' swine', are Ungulates which have been domesticated as sources of food leather and similar products since ancient times Poultry is the category of Domesticated Birds which some humans keep for the purpose of collecting their eggs, or kill for their Meat and/or Hunting is the practice of pursuing Animals for Food, Recreation, or Trade. In areas of Central and Northern Norway, the Sami subsisted on the nomadic herding of reindeer. North Norway ( Norwegian: Nord-Norge ( Bokmål) or Nord-Noreg ( Nynorsk) is the geographical region of northern The Sami people are the Indigenous people of northern Europe inhabiting Sápmi, which today encompasses parts of northern Sweden, Norway Nomadic people, (from the νομάδες nomádes, "those who let pasture herds" also known as nomads, are communities of people that Fishing all around the coast was dangerous work, though fish such as herring, cod, halibut, and other cold-water species were found in abundance. Herring are small Oily fish of the genus Clupea found in the shallow temperate waters of the North Atlantic, the Baltic Sea, the North Cod is the common name for the Genus Gadus of Fish, belonging to the family Gadidae, and is also used in the common name of a variety A halibut is a type of Flatfish The introduction of the potato to Norway provided considerable relief for Norwegians. The potato is a Starchy Tuberous crop Vegetable from the perennial Solanum tuberosum of the Solanaceae
All around the coast, the harvesting of fish (including cod, herring, halibut, and other cold water species) was an important supplement to farming and was in many areas in the north and west the primary household subsistence. Cod is the common name for the Genus Gadus of Fish, belonging to the family Gadidae, and is also used in the common name of a variety Herring are small Oily fish of the genus Clupea found in the shallow temperate waters of the North Atlantic, the Baltic Sea, the North A halibut is a type of Flatfish North Norway ( Norwegian: Nord-Norge ( Bokmål) or Nord-Noreg ( Nynorsk) is the geographical region of northern Western Norway ( Norwegian: Vestlandet) is the region along the Atlantic coast of southern Norway. Fishing was typically supplemented with crop-growing and the raising of livestock on small farms.
The economic conditions in Norway did not lend themselves to the formation of feudal system, though several kings did reward land to loyal subjects who became knights. Feudalism, a term first used in the early modern period (17th century in its most classic sense refers to a Medieval Europe Political system composed Knight is the English term for a social position originating in the Middle Ages. Self-owning farmers were—and continue to be—the main unit of work in Norwegian agriculture, but leading up to the 19th century farmers ran out of land available for farming. Many agricultural families were reduced to poverty as tenant farmers, and served as the impetus for emigration to North America. A tenant farmer is one who resides on and farms land owned by a Landlord. "Emigrant" redirects here For the Butterflies, see Catopsilia. Norwegian Americans (norskamerikanere are Americans of Norwegian descent
Merchant and civil servant classes were small in Norway. In some cities, notably Bergen, trading centers grew up around import and export of various goods, especially stockfish, going back to the Viking era. is the second largest city in Norway. It is located on the south-western coast of Norway in the county of Hordaland in between a group of mountains known as De syv fjell Stockfish is unsalted Fish, especially Cod, dried by sun and wind on wooden racks on the foreshore called flakes, or in special drying houses A Viking is one of the Norse ( Scandinavian Explorers Warriors Merchants, and pirates who raided and colonized wide areas Centers for shipping grew along the coast, and a small number of shipping magnates were among the first truly wealthy people in Norway.
Industrial revolution
Aside from mining in Kongsberg and Røros, industrialization came with the first textile mills that were built in Norway in the middle of the 19th century. This article is about the Norwegian town For the industrial corporation named Kongsberg see Kongsberg Gruppen (with links to subsidiary firms. is a Town and municipality in the county of Sør-Trøndelag, Norway. But the first large industrial enterprises came into formation when entrepreneurs built plants around sources of hydroelectric energy. Norsk Hydro was founded by Sam Eyde, and industrial communities arose in such places as Rjukan, Odda, and elsewhere. Norsk Hydro ASA (,) is a Norwegian Aluminium and Renewable energy company headquartered in Oslo. Samuel Eyde ( 29 October 1866, Arendal – 21 June 1940) was a Norwegian engineer and Industrialist Rjukan is a city and the administrative center of Tinn municipality in Telemark. is a municipality and town in the county of Hordaland, Norway
In 1910, the industrial output exceeded agricultural output in Norway. Year 1910 ( MCMX) was a Common year starting on Saturday (link will display calendar of the Gregorian calendar (or a Common year starting As the benefits became apparent and capital available, manufacturing facilities such as dairies, fish refineries, paper mills, metal refineries, furniture, etc. , grew up. To a great extent, industrialization became a matter of regional politics, leading to the founding of banks to serve those needs.
Industries also offered employment for a large number of individuals who were displaced from the agricultural sector. As wages from industry exceeded those from agriculture, the shift started a long-term trend of reduction in cultivated land and rural population patterns. The working class became a distinct phenomenon in Norway, with its own neighborhoods, culture, and politics.
Social democratic reforms and the welfare state
The radical roots of the socialist movement in Norway were based on dangerous working conditions, exploitative labor relations policies, and the demand for collective bargaining. Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution As socialism became part of the mainstream labor movement, it also became part of the mainstream political discourse.
After World War II, the Norwegian Labour Party, with Einar Gerhardsen as prime minister, embarked on a number of social democratic reforms aimed at flattening the income distribution, eliminating poverty, ensuring social services such as retirement, medical care, and disability benefits to all, and putting more of the capital into the public trust. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including The Norwegian Labour Party ( Norwegian: Det norske arbeiderparti ( DNA) or Arbeiderpartiet ( AP) is a Social democratic (10 May 1897 &ndash 19 September 1987 was a Norwegian politician from the Labour Party of Norway.
As a result, the public sector grew as a percentage of the overall economy. Highly progressive income taxes, the introduction of value-added tax, and a large number of special surcharges and taxes made Norway one of the most heavily taxed economies in the world. Authorities were particularly inclined to tax discretionary spending, applying special taxes on automobiles, tobacco, alcohol, cosmetic items, etc. Since assets were also subject to taxation, there were individuals who ended up with tax liabilities hole in excess of their gross income.
Norway's long-term social democratic policies, extensive governmental tracking of information, and the homogeneity of its population lent themselves particularly well for economic study, and academic research from Norway proved to make significant contributions to the field of macroeconomics during this era. When Norway became a petroleum-exporting country, the economic effects came under further study.
Petroleum and post-industrialism
Oil-exporting country
In May of 1963, Norway asserted sovereign rights over natural resources in its sector of the North Sea. Since the discovery of North Sea oil in Norwegian waters during the late 1960s exports of oil and gas have become very important elements of the Economy of Norway. Year 1963 ( MCMLXIII) was a Common year starting on Tuesday (link will display full calendar of the Gregorian calendar. The North Sea is a marginal, Epeiric sea of the Atlantic Ocean on the European Continental shelf. Exploration started on July 19, 1966, when Ocean Traveler drilled its first well. Events 711 - Muslim forces under Tariq ibn Ziyad defeat the Visigoths led by their king Roderic. Year 1966 ( MCMLXVI) was a Common year starting on Saturday (link will display full calendar of the 1966 Gregorian calendar. Initial exploration was fruitless, until Ocean Viking found oil on August 21, 1969. Events 1192 - Minamoto Yoritomo becomes Seii Tai Shōgun and the De facto ruler of Japan. Year 1969 ( MCMLXIX) was a Common year starting on Wednesday (link will display full calendar of the Gregorian calendar. By the end of 1969, it was clear that there were large oil and gas reserves in the North Sea. The first oil field was Ekofisk, produced 427,442 barrels of crude in 1980. Ekofisk is an oil field in the Norwegian sector of the North Sea. Year 1980 ( MCMLXXX) was a Leap year starting on Tuesday (link displays the 1980 Gregorian calendar) Since then, large natural gas reserves have also been discovered. Natural gas is a Gaseous Fossil fuel consisting primarily of Methane but including significant quantities of Ethane, Propane,
Against the backdrop of the Norwegian referendum to not join the European Union, the Norwegian Ministry of Industry, headed by Ola Skjåk Bræk moved quickly to establish a national energy policy. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in The Royal Norwegian Ministry of Trade and Industry ( Norwegian: Nærings- og handelsdepartementet) is a Norwegian ministry responsible for business Ola Skjåk Bræk (born February 4 1912 in Eidsvoll, died December 26 1999 in Trondheim) was a Norwegian banker Norway decided to stay out of OPEC, keep its own energy prices in line with world markets, and spend the revenue - known as the "currency gift" - wisely. The Organization of the Petroleum Exporting Countries ( OPEC) is a Cartel of thirteen countries made up of Algeria, Angola, Ecuador The Government Pension Fund of Norway comprises two entirely separate Sovereign wealth funds owned by the Government of Norway: The Government Pension Fund The Norwegian government established its own oil company, Statoil, and awarded drilling and production rights to Norsk Hydro and the newly formed Saga Petroleum. Statoil ASA was a Norwegian Petroleum company established in 1972, now part of StatoilHydro. Norsk Hydro ASA (,) is a Norwegian Aluminium and Renewable energy company headquartered in Oslo. Saga Petroleum was a Norwegian upstream Petroleum company established in 1972 that was acquired by Norsk Hydro in 1999
The North Sea turned out to present many technological challenges for production and exploration, and Norwegian companies invested in building capabilities to meet these challenges. A number of engineering and construction companies emerged from the remnants of the largely lost shipbuilding industry, creating centers of competence in Stavanger and the western suburbs of Oslo. is a city and municipality in the county of Rogaland, Norway. (called Christiania from 1624 to 1878 and Kristiania from 1878 to 1924 is the Capital and largest city of Norway. Stavanger also became the land-based staging area for the offshore drilling industry. Presently North Sea is past its peak oil production.
Reservations about European Union
On September 24 and 25, 1972, the Norwegian parliament put to a referendum the question whether Norway should join the European Union. Events 622 - Prophet Muhammad completes his hegira from Mecca to Medina. Events 303 - On a voyage preaching the Gospel, Saint Fermin of Pamplona is beheaded in Amiens, France Year 1972 ( MCMLXXII) was a Leap year starting on Saturday (link will display full calendar of the Gregorian calendar. The Storting ( Stortinget, literally "the Great Thing /Assembly" is the Norwegian Parliament, and is located in the capital city The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in The proposal was turned down with a slim margin. The Norwegian government proceeded to negotiate a trade agreement with the EU that would give Norwegian companies access to European markets. Over time, Norway renegotiated and refined this agreement, ultimately joining the European Free Trade Association and the European Economic Area. The European Free Trade Association ( EFTA) is a European Trade bloc which was established on 3 May 1960 as an alternative for European states who were either The European Economic Area ( EEA) came into being on 1 January 1994 following an agreement between member states of European Free Trade Association (EFTAthe
Although Norway's trade policies have long aimed at harmonizing its industrial and trade policy with the EU's, a new referendum in 1994 gave the same result as in 1972, and Norway remains the only Scandinavian country outside of the EU. Year 1994 ( MCMXCIV) was a Common year starting on Saturday (link will display full 1994 Gregorian calendar) Terminology and usage As a cultural term "Scandinavia" has no official definition and is subject to usage by those who identify with the culture in question as well
Although much of the highly divisive public debate about EU membership turned on political rather than economic issues, it formed economic policy in several important ways:
- Both politicians and the public came to terms with the fact that Norway's economic development was dependent on taking advantage of its comparative advantage by specializing in certain areas for export and relying on import for everything else. In international trade the principle of comparative advantage refers to the fact that although one country may have an absolute disadvantage with another value can be created for both This has had a significant effect on Norway's agricultural policy, which has been reshaped to address population patterns rather than self-sufficiency.
- The proceeds from oil revenue could not fuel private or public consumption if Norway were to sustain its prosperity when oil reserves run out. Oil reserves are the estimated quantities of Crude oil that are claimed to be recoverable under existing Economic and operating conditions
- In order to participate in European markets, Norway has had to open its domestic markets to European imports. Although some pricing and distribution issues (e. g. , alcohol and automobiles) remain unresolved, Norway's consumer, capital, and employment markets are increasingly approaching those of Europe in general.
Most Norwegian politicians and the public agree that Norway's economic policy should be based on a de facto membership in the European Union. Norwegians have sought accommodations on a range of specific issues, such as products from fish farms, agricultural products, emission standards, etc. , but these do not appear to differ substantially from those sought by bona fide EU members. It is expected that the issue of membership will be brought to a referendum again at some point.
Post-industrial economic developments
Several issues have dominated the debate on Norway's economy since the 1970s:
- Cost of living - Norway is among the most expensive countries in the world, as reflected in the Big Mac Index and other indexes. Cost of living is the Cost of maintaining a certain Standard of living. The Big Mac Index is an informal way of measuring the Purchasing power parity (PPP between two currencies and provides a test of the extent to which market Exchange Historically, transportation costs and barriers to free trade had caused the disparity, but in recent years, Norwegian policy with respect to labor relations, taxation, etc. , have contributed significantly.
- Competitiveness of "mainland" industries - the high cost of labor and other structural features of the Norwegian environment have caused concern about Norway's ability to maintain its cost of living in a post-petroleum era. There is a clear trend toward ending the practice of "protecting" certain industries (vernede industrier) and making more of them "exposed to competition" (konkurranseutsatte). In addition to interest in information technology, a number of small- to medium-sized companies have been formed to develop and market highly specialized technology solutions.
- The role of the public sector - the ideological divide between socialist and non-socialist views on public ownership has decreased over time. The Norwegian government has sought to reduce its ownership over companies that require access to private capital markets, and there is an increasing emphasis on government facilitating entrepreneurship rather than controlling (or restricting) capital formation. A residual distrust of the "profit motive" persists, and Norwegian companies are heavily regulated, especially with respect to labor relations.
- The future of the welfare state - since World War II, successive Norwegian governments have sought to broaden and extend public benefits to its citizens, in the form of sickness and disability benefits, minimum guaranteed pensions, heavily subsidized or free universal health care, unemployment insurance, etc. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including Public policy still favors the provision of such benefits, but there is increasing debate on making them more equitable and needs-based.
- Urbanization - for several decades, agricultural policy in Norway was based on the premise of minimal self-sufficiency. In later years, this has given way to a greater emphasis on maintaining population patterns outside of major urban areas. The term "district policy" (distriktspolitikk) has come to mean the demand that old and largely rural Norway is allowed to persist, ideally by providing them with a sustainable economic basis.
- Taxation - the primary purpose of the Norwegian tax system has been to raise revenue for public expenditures; but it is also viewed as a means to achieve social objectives, such as redistribution of income, reduction in alcohol and tobacco consumption, and as a disincentive against certain behaviors. Three elements of the tax system seem to attract the most debate:
- Progressive taxation. A progressive tax is a Tax imposed so that the Tax rate increases as the amount subject to taxation increases At one time one of the most aggressive in the world, the top marginal tax rate on income has been decreased over time. In addition, Norwegians are taxed for their stated net worth, which some have argued discourages savings.
- Value-added tax. Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. The largest source of government revenue. The current standard rate is 25%, food and drink is 14%, and movie theater tickets and public transportation 7%.
- Special surcharges and taxes. The government has established a number of taxes related to specific purchases, including cars, alcohol, tobacco, and various kinds of benefits.
- Environmental concerns. A number of political issues have had their origins in economic concerns, including the refineries at Mongstad and the hydroelectric power plant at Alta. Mongstad is an industrial site located in the municipalities of Lindås and Austrheim in Hordaland, Norway. The Alta controversy refers to a political controversy in Norway in the late 1970s and early 1980s concerning the construction of a Hydroelectric power plant in the
Economic Structure and Sustained Growth
The emergence of Norway as an oil-exporting country has raised a number of issues for Norwegian economic policy. There has been concern that much of Norway's human capital investment has been concentrated in petroleum-related industries. Critics have pointed out that Norway's economic structure is highly dependent on natural resources that do not require skilled labor, making economic growth highly vulnerable to fluctuations in the demand and pricing for these natural resources. The Government Pension Fund of Norway is part of several efforts to hedge against dependence on petroleum revenue. The Government Pension Fund of Norway comprises two entirely separate Sovereign wealth funds owned by the Government of Norway: The Government Pension Fund
Because of the oil boom since the 70's, there has been little extensive government incentive to help develop and encourage new industries in the private sector, in contrast to other Nordic countries like Sweden and particularly Finland. However the last decade have started to see some incentive on national and local government levels to encourage formation of new "mainland" industries that are competitive internationally. In addition to aspirations for a high-tech industry, there is growing interest in encouraging small business growth as a source of employment for the future.
There is continuing debate over the role of the public sector in Norway's economic development. Although there is broad consensus that Norway should pursue a mixed economic model, there is a persistent ideological schism between those who favor free market forces vs. A mixed economy is an Economic system that incorporates aspects of more than one economic system Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where socialist mechanisms. Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution
In 2007, Norway saw a massive 6% growth of its economy, outpacing any other western nation. However, the growth was mostly due to increased consumer demand, and is expected to slow down in 2008.
Statistics
GDP: current price - $346 billion (2006 est. )
GDP - real growth rate: 3. 0% (2006 est. )
GDP - per capita: purchasing power parity - $47,800 (2006 est. )
GDP - composition by sector:
agriculture: 2. 3%
industry: 41. 4%
services: 56. 3% (2006 est. )
Population below poverty line: N/A
Household income or consumption by percentage share:
lowest 10%: 4. 1%
highest 10%: 21. 8% (1995)
Inflation rate (consumer prices): 2. 3% (2006 est. )
Labor force: 2. 4 million (2000 est. )
Labor force - by occupation: services 74%, industry 22%, agriculture, forestry, and fishing 4% (1995)
Unemployment rate: 1. 7% (2007 est. )
Employed persons as percentage of population 70. 0% (3rd qtr 2006)
Budget:
revenues: $195. 8 billion
expenditures: $133. 1 billion; including capital expenditures of $NA (2006 est. )
Industries: petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, photovoltaics,software, electronics,chemical, timber, mining, textiles, fishing
Industrial production growth rate: 1. Petroleum ( L petroleum, from Greek πετρέλαιον, lit This page is about the physical properties of gas as a state of matter Food is any substance usually composed primarily of Carbohydrates Fats water and/or Proteins that can be eaten or drunk by an See also Shipbuilding (song. Shipbuilding is the construction of Ships It normally takes place in a specialized facility known as a Wood pulp is a dry fibrous material prepared by chemically or mechanically separating the fibers which make up Wood. Paper is thin material mainly used for writing upon printing upon or packaging The M acro E xpansion T emplate A ttribute L anguage complements TAL, providing macros which allow the reuse of code across Photovoltaics ( PV) is the field of technology and research related to the application of Solar cells for Energy by converting Sunlight directly Electronics refers to the flow of charge (moving Electrons through Nonmetal conductors (mainly Semiconductors, whereas electrical The chemical industry comprises the companies that produce industrial chemicals Lumber or timber is Wood in any of its stages from felling through readiness for use as structural Material for Construction, or Mining is the extraction of valuable Minerals or other geological materials from the earth usually (but not always from an Ore body A textile is a flexible material comprised of a network of natural or artificial Fibres often referred to as thread or Yarn. For the computer security term see Phishing. Fishing is the activity of catching Fish. 8% (2006 est. )
Electricity - production: 108. 9 billion kWh (2004)
Electricity - production by source:
fossil fuel: 0. 4%
hydro: 99. 3%
nuclear: 0%
other: 0. 4% (2001)
Electricity - consumption: 112. 8 billion kWh (2004)
Electricity - exports: 3. 8 billion kWh (2004)
Electricity - imports: 15. 3 billion kWh (2004)
Agriculture - products: barley, other cereals, potatoes; beef, milk; fish
Exports: $161. Barley ( Hordeum vulgare) is an annual Cereal Grain, which serves as a major animal Feed crop, with smaller amounts used for The potato is a Starchy Tuberous crop Vegetable from the perennial Solanum tuberosum of the Solanaceae Beef is the Culinary name for Meat from Bovines especially domestic Cattle (cows Milk is an opaque white liquid produced by the Mammary glands of female Mammals (including Monotremes. Fish are aquatic Vertebrate animals that are typically ectothermic (previously Cold-blooded) covered with scales, and equipped with two 3 billion f. o. b. (2006 est. )
Exports - commodities: petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish
Exports - partners: UK 25. Petroleum ( L petroleum, from Greek πετρέλαιον, lit A machine is any device that uses Energy to perform some activity The M acro E xpansion T emplate A ttribute L anguage complements TAL, providing macros which allow the reuse of code across A chemical substance is a Material with a definite chemical composition. A ship /ʃɪp/ is a large vessel that floats on water Ships are generally distinguished from Boats based on size Fish are aquatic Vertebrate animals that are typically ectothermic (previously Cold-blooded) covered with scales, and equipped with two The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 5%, Germany 12. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 6%, Netherlands 9. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 9%, France 9. This article is about the country For a topic outline on this subject see List of basic France topics. 1%, US 6. The United States of America —commonly referred to as the 7%, Sweden 6. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 5% (2005)
Imports: $98 billion f. o. b. (2006 est. )
Imports - commodities: machinery and equipment, chemicals, metals, foodstuffs
Imports - partners: Sweden 14. The chemical industry comprises the companies that produce industrial chemicals The M acro E xpansion T emplate A ttribute L anguage complements TAL, providing macros which allow the reuse of code across Food is any substance usually composed primarily of Carbohydrates Fats water and/or Proteins that can be eaten or drunk by an "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 6%, Germany 13. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 6%, Denmark 7. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe 3%, UK 6. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 8%, China 5. China ( Wade-Giles ( Mandarin) Chung¹kuo² is a cultural region, an ancient Civilization, and depending on perspective a National 5%, US 5%, France 4% (2005)
Debt - external: $350. The United States of America —commonly referred to as the This article is about the country For a topic outline on this subject see List of basic France topics. 3 billion; note - Norway is a net external creditor (30 June 2006)
Economic aid - donor: ODA, $2. 1 billion (2003)
Currency: 1 Norwegian Krone (NOK) = 100 øre
Exchange rates: Norwegian kroner (NKr) per US$1 - 5,021 (June 2008), 6. The krone ( sign: kr; code: NOK) is the Currency of Norway. The plural form is kroner. The krone ( sign: kr; code: NOK) is the Currency of Norway. The plural form is kroner. 1016 (December 2006), 6. 7256 (May 2004), 8. 0129 (January 2000), 7. 7992 (1999), 7. 5451 (1998), 7. 0734 (1997), 6. 4498 (1996), 6. 3352 (1995)
Fiscal year: calendar year
See also
References
- Economic history of Norway EH. Economic development Pre-1945 Industrial growth Prior to World War II, Europe's major financial and industrial states were the United Kingdom, A social, or Socioeconomic, model, is the way in which society functions within a state net encyclopedia article by business historian Ola Honningdal Grytten, professor at NHH
- OSE ALL SHARE GI
- A substantial part of this article has been copied from the Bureau of Public Affairs, U. The Norwegian School of Economics and Business Administration (Norges Handelshøyskole or NHH was founded in 1936 S. Department of State, country overview for Norway.
- Norway in CIA World Factbook
- Statistics Norway
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