Norway Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Norway has a stable economy with a vibrant private sector, a large state sector, and an extensive social safety net. Norway opted out of the EU during a referendum in November 1994. However, as a member of the European Economic Area, Norway partially participates in the EU’s single market and contributes sizably to the EU budget.

The country is richly endowed with natural resources such as oil and gas, fish, forests, and minerals. Norway is a leading producer and the world’s second largest exporter of seafood, after China. The government manages the country’s petroleum resources through extensive regulation. The petroleum sector provides about 9% of jobs, 12% of GDP, 13% of the state’s revenue, and 37% of exports, according to official national estimates. Norway is one of the world's leading petroleum exporters, although oil production is close to 50% below its peak in 2000. Gas production, conversely, has more than doubled since 2000. Although oil production is historically low, it rose in 2016 for the third consecutive year due to the higher production of existing oil fields and to new fields coming on stream. Norway’s domestic electricity production relies almost entirely on hydropower.

In anticipation of eventual declines in oil and gas production, Norway saves state revenue from petroleum sector activities in the world's largest sovereign wealth fund, valued at over $1 trillion at the end of 2017. To help balance the federal budget each year, the government follows a "fiscal rule," which states that spending of revenues from petroleum and fund investments shall correspond to the expected real rate of return on the fund, an amount it estimates is sustainable over time. In February 2017, the government revised the expected rate of return for the fund downward from 4% to 3%.

 

After solid GDP growth in the 2004-07 period, the economy slowed in 2008, and contracted in 2009, before returning to modest, positive growth from 2010 to 2017. The Norwegian economy has been adjusting to lower energy prices, as demonstrated by growth in labor force participation and employment in 2017. GDP growth was about 1.5% in 2017, driven largely by domestic demand, which has been boosted by the rebound in the labor market and supportive fiscal policies. Economic growth is expected to remain constant or improve slightly in the next few years.

Real GDP (purchasing power parity)

$342.06 billion (2020 est.)

$344.69 billion (2019 est.)

$341.78 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

0.86% (2019 est.)

1.36% (2018 est.)

2.75% (2017 est.)

Real GDP per capita

$63,600 (2020 est.)

$64,500 (2019 est.)

$64,300 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$405.695 billion (2019 est.)

Inflation rate (consumer prices)

2.1% (2019 est.)

2.7% (2018 est.)

1.8% (2017 est.)

Credit ratings

Fitch rating: AAA (1995)

Moody's rating: Aaa (1997)

Standard & Poors rating: AAA (1975)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 2.3% (2017 est.)

industry: 33.7% (2017 est.)

services: 64% (2017 est.)

GDP - composition, by end use

household consumption: 44.8% (2017 est.)

government consumption: 24% (2017 est.)

investment in fixed capital: 24.1% (2017 est.)

investment in inventories: 4.8% (2017 est.)

exports of goods and services: 35.5% (2017 est.)

imports of goods and services: -33.2% (2017 est.)

Agricultural products

milk, barley, wheat, potatoes, oats, pork, poultry, beef, eggs, rye

Industries

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

Industrial production growth rate

1.5% (2017 est.)

Labor force

2.699 million (2020 est.)

Labor force - by occupation

agriculture: 2.1%

industry: 19.3%

services: 78.6% (2016 est.)

Unemployment rate

3.72% (2019 est.)

3.89% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 12.6%

male: 13.3%

female: 11.8% (2021 est.)

Population below poverty line

12.7% (2018 est.)

Gini Index coefficient - distribution of family income

27 (2017 est.)

25.8 (1995)

Household income or consumption by percentage share

lowest 10%: 3.8%

highest 10%: 21.2% (2014)

Budget

revenues: 217.1 billion (2017 est.)

expenditures: 199.5 billion (2017 est.)

Budget surplus (+) or deficit (-)

4.4% (of GDP) (2017 est.)

Public debt

36.5% of GDP (2017 est.)

36.4% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data exclude treasury debt held by foreign entities; the data exclude debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions

Taxes and other revenues

54.4% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

$16.656 billion (2019 est.)

$31.111 billion (2018 est.)

Exports

$117.06 billion (2020 est.) note: data are in current year dollars

$146.71 billion (2019 est.) note: data are in current year dollars

$165.37 billion (2018 est.) note: data are in current year dollars

Exports - partners

United Kingdom 18%, Germany 14%, Netherlands 10%, Sweden 9%, France 6%, United States 5% (2019)

Exports - commodities

crude petroleum, natural gas, fish, refined petroleum, aluminum (2019)

Imports

$119 (2020 est.) note: data are in current year dollars

$140 (2019 est.) note: data are in current year dollars

$140 (2018 est.) note: data are in current year dollars

Imports - partners

Sweden 17%, Germany 12%, China 8%, Denmark 7%, United States 6%, United Kingdom 5%, Netherlands 5% (2019)

Imports - commodities

cars, refined petroleum, broadcasting equipment, natural gas, crude petroleum (2019)

Reserves of foreign exchange and gold

$65.92 billion (31 December 2017 est.)

$57.46 billion (31 December 2015 est.)

Debt - external

$651.04 billion (2019 est.)

$648.878 billion (2018 est.)

note: Norway is a net external creditor

Exchange rates

Norwegian kroner (NOK) per US dollar -

8.81535 (2020 est.)

9.14245 (2019 est.)

8.4837 (2018 est.)

8.0646 (2014 est.)

6.3021 (2013 est.)

NOTE: The information regarding Norway on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Norway 2022 information contained here. All suggestions for corrections of any errors about Norway 2022 should be addressed to the CIA or the source cited on each page.