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Norway Economy 1996
Norway has a mixed economy involving 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) and
extensively subsidizes agriculture, fishing, and areas with sparse
resources. Norway also maintains an extensive welfare system that helps
propel public sector expenditures to slightly more than 50% of the GDP and
results in one of the highest average tax burdens in the world (54%). A
small country with a high dependence on international trade, Norway is
basically an exporter of raw materials and semiprocessed goods, with an
abundance of small- and medium-sized firms, and is ranked among the major
shipping nations. The country is richly endowed with natural resources -
petroleum, hydropower, fish, forests, and minerals - and is highly dependent
on its oil sector to keep its economy afloat. Norway imports more than half
its food needs. Although one of the government's main priorities is to
reduce this dependency, this situation is not likely to improve for years to
come. The government also hopes to reduce unemployment and strengthen and
diversify the economy through tax reform and a series of expansionary
budgets. The budget deficit is expected to hit a record 8% of GDP because of
welfare spending and bail-outs of the banking system. Unemployment is
currently running at 8.4% - including those in job programs - because of the
weakness of the economy outside the oil sector. Economic growth, only 1.6%
in 1993, moved up to 5.5% in 1994. Oslo opted to stay out of the EU during a
referendum in November 1994.
GDP - purchasing power parity - $95.7 billion (1994 est.)
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National product real growth rate:
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National product per capita:
-
Inflation rate (consumer prices):
8.4% (including people in job-training programs; 1994 est.)
$55.5 billion, including capital expenditures of $NA (1994 est.)
$36.6 billion (f.o.b., 1994)
petroleum and petroleum products 40%, metals and products 10.6%, fish and
fish products 6.9%, chemicals 6.4%, natural gas 6.0%, ships 5.4%
EC 66.3%, Nordic countries 16.3%, developing countries 8.4%, US 6.0%, Japan
1.8% (1993)
$29.3 billion (c.i.f., 1994)
machinery and equipment 38.9%, chemicals and other industrial inputs 26.6%,
manufactured consumer goods 17.8%, foodstuffs 6.4%
EC 48.6%, Nordic countries 25.1%, developing countries 9.6%, US 8.1%, Japan
8.0% (1993)
growth rate 4.6% (1994); accounts for 14% of GDP
petroleum and gas, food processing, shipbuilding, pulp and paper products,
metals, chemicals, timber, mining, textiles, fishing
accounts for 3% of GDP and about 6% of labor force; among world's top 10
fishing nations; livestock output exceeds value of crops; fish catch of 1.76
million metric tons in 1989
transshipment point for drugs shipped via the CIS and Baltic states for the
European market
ODA and OOF commitments (1970-89), $4.4 billion
1 Norwegian krone (NKr) = 100 oere
Norwegian kroner (NKr) per US$1 - 6.7014 (January 1995), 7.0469 (1994),
7.0941 (1993), 6.2145 (1992), 6.4829 (1991), 6.2597 (1990)
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