Norway

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Norway has the second highest GNP per capita in the world. The country is also at second place in UNDP's Human Development Index. Norway was affected by the international economic recession. In effect, despite growth remaining positive in 2008, it weakened. Growth was negative in 2009 and this trend is expected to continue until 2010. In terms of purchasing power parity, GNP per capita reached USD 55,600. Norway is expected to keep a significant current account surplus (about 17% of the GNP). Inflation has been low in recent years and should remain so in the coming years. The national budget is strongly in surplus and the unemployment rate remains low.

Norway was strongly impacted by the global economic recession, even though the drop in production was less severe than in other countries. The export sector was hit head on and domestic demand, mainly investment, shrunk rapidly. The authorities immediately reacted to the capital market difficulties with several measures aimed at reestablishing the credit markets' normal performance and stimulating production.

Even though Norway is not part of the European Union, it participates in the single market through the EEA agreement (European Economic Area). The country has a mixed economy, which depends on both the market and the State. The state has majority shareholding in the production of oil, hydroelecric energy and aluminum. Overall, the government controls 30% of publicly listed companies.

Although very dependent on oil prices, the Norwegian economy is very sound and has positive prospects.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	337.09	389.52	456.23	340.73	357.54e
GDP (constant prices, annual % change)	2.3	3.1	2.0	-1.7e	0.3
GDP per capita (USD)	72,010	82,226	95,062e	70,644e	73,686
General government balance (in % of GDP)	18.5	17.7	18.8	9.8e	11.0
Inflation rate (%)	2.3	0.7	3.8e	1.5e	1.9e
Unemployment rate (% of the labor force)	3.4	2.5	2.6	3.7	4.7
Current Account (billions USD)	58.09	61.98	83.80e	37.61e	44.96
Current Account (in % of GDP)	17.2	15.9	18.4	11.0e	12.6

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

Agriculture contributes about 2% to the GNP. Norway is one of the biggest exporters of fish in the world making fishing is an important activity. Government subsidies for agriculture are considerable.

Industry in Norway has traditionally been based upon the country's natural resources and abundant hydroelectric power. Norway is well endowed with natural resources like oil, gas, hydraulic power, forests and minerals. Oil production dominates the economy, accounting for nearly a quarter of the GNP. Average production of crude oil in 2006 was 2,8 million barrels per day. Norway is also a major producer and exporter of natural gas. There is a concensus among the political parties to save oil and gas revenues for future generations, to the point where Norway has one of the biggest sovereign funds in the world. Shipbuilding, metals, pulp and paper, chemical industries, machinery and electrical equipment are Norway's primary manufacturing industries. Norway has one of the biggest and most modern fleets in the world.

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

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	3.3	20.8	75.9
Value added (in % of GDP)	1.4	43.0	55.5
Value added (annual % change)	14.1	-0.6	5.2

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Norwegian Krone (NOK) - Average annual exchange rate for 1 USD	6.74	6.44	6.41	5.86	5.64

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 70.2/100
Position:: mostly free
World Rank:: 28 out of 179
Regional Rank:: 15 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Internationally, Norway has an advanced economy. Norway traditionally exports energy-intensive products and imports technology-intensive products. Its main trade partners are the European Union countries.

The country is one of the world's biggest oil exporters. Oil and gas exports account for almost 70% of the country's exports. Norway is the biggest Western European energy market supplier of natural gas. The overall trade surplus is considerable. This Scandinavian country is also the world's largest exporter of fish. It exports namely salmon, which represents one third of all fish exports. Overall Norway is ranked 30th amongst the world's biggest exporters. Industrial products (ships, oil platforms, etc) constitute nearly 10 % of total exports.

Freight income from foreign maritime traffic accounts for nearly 45% of exports in the services, finance and corporate services sectors. Norway mainly imports manufactured goods (machinery, carriers and information technology), which accounts for 40% of total imports.

The country showed a surplus trade balance in 2008, a trend which should continue during the coming years.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	40,504	49,035	55,094	62,933	77,026
Exports of goods (millions USD)	68,666	83,164	104,011	122,789	137,297
Imports of services (millions USD)	20,569	24,304	29,182	31,957	39,758
Exports of services (millions USD)	21,663	25,263	29,928	33,328	40,592
Imports of goods and services (annual % change)	1.4	8.8	8.7	8.1	8.7
Exports of goods and services (annual % change)	-0.2	1.1	1.1	0.4	2.8
Imports of goods and services (in % of GDP)	27.3	28.5	28.2	28.3	30.1
Exports of goods and services (in % of GDP)	40.3	42.0	44.6	46.5	45.8
Trade Balance (millions USD)	28,162	34,129	48,917	59,856	60,271
Trade Balance (including service) (millions USD)	29,256	35,088	49,664	61,227	61,105
Foreign trade (in % of GDP)	67.6	70.5	72.8	74.8	75.9

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United Kingdom	26.9%
Germany	12.8%
Netherlands	10.3%
France	9.4%
Sweden	6.5%
United States	4.4%
Denmark	3.4%
Italy	3.1%
Belgium	2.5%
Canada	2.3%
Spain	1.8%
Poland	1.6%
Finland	1.4%
China	1.2%
Ireland	1.1%
South Korea	1.0%
Japan	0.9%
Czech Republic	0.7%
Singapore	0.7%
Russia	0.7%
See more countries	34.0%

Main suppliers (% of imports)	2008
Sweden	14.3%
Germany	13.4%
Denmark	6.9%
China	6.5%
United Kingdom	6.0%
United States	5.5%
Netherlands	4.1%
France	3.7%
Finland	3.4%
Italy	3.3%
Canada	2.8%
Poland	2.5%
Russia	2.2%
Japan	2.2%
Spain	2.0%
Belgium	2.0%
Brazil	1.3%
South Korea	1.2%
Switzerland	1.1%
Ireland	1.0%
See more countries	52.9%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	67.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	4.8%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	4.0%
Aluminium and articles thereofAluminium and articles thereof	3.6%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	2.3%
Ships, boats and floating structuresShips, boats and floating structures	1.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.1%
Nickel and articles thereofNickel and articles thereof	1.1%
Iron and steelIron and steel	1.1%
Articles of iron or steelArticles of iron or steel	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.6%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.5%
Organic chemicalsOrganic chemicals	0.5%
Pharmaceutical productsPharmaceutical products	0.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Plastics and articles thereofPlastics and articles thereof	0.3%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Zinc and articles thereofZinc and articles thereof	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.1%
See more products	17.6%

Main imports (% of imports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	15.9%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.4%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.3%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	4.8%
Articles of iron or steelArticles of iron or steel	4.7%
Ships, boats and floating structuresShips, boats and floating structures	4.4%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	3.4%
Nickel and articles thereofNickel and articles thereof	3.1%
Plastics and articles thereofPlastics and articles thereof	2.9%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.6%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	2.3%
Aluminium and articles thereofAluminium and articles thereof	2.2%
Pharmaceutical productsPharmaceutical products	2.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	2.0%
Iron and steelIron and steel	2.0%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.2%
Organic chemicalsOrganic chemicals	1.0%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Rubber and articles thereofRubber and articles thereof	0.9%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.8%
Ores, slag and ashOres, slag and ash	0.8%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.7%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.7%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.6%
Copper and articles thereofCopper and articles thereof	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Glass and glasswareGlass and glassware	0.5%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.5%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.4%
FertilizersFertilizers	0.4%
Ceramic productsCeramic products	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.4%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.3%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.3%
CerealsCereals	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Works of art, collectors' pieces and antiquesWorks of art, collectors' pieces and antiques	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
See more products	56.0%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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 2009

Indicator of freedom of the press

World Rank:: 3/173
Evolution:: 1 place down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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