 | |
| Calendar year | |
Trade organisations | EFTA,OECD,WTO,EEA and others |
Country group | |
| Statistics | |
| Population | 5,367,580 (1 January 2020)[3] |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
| 3.3% (2024 est.)[4] | |
Population belowpoverty line | |
| 24.7low (2023)[7] | |
| |
 84 out of 100 points (2023)[10] (4th) | |
Labour force | |
Labour force by occupation |
|
| Unemployment | |
Average gross salary | €55,200 annual |
| €40,500 annual | |
Main industries | |
| External | |
| Exports | $102.8 billion (2017 est.)[5] |
Export goods | petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish |
Main export partners |
|
| Imports | $95.06 billion (2017 est.)[5] |
Import goods | machinery and equipment, chemicals, metals, foodstuffs |
Main import partners |
|
FDI stock | |
| $73.13 billion (2024 est.)[4] | |
Grossexternal debt |
|
| Public finances | |
| 36.5% of GDP (2017 est.)[5][note 1] | |
| $65.92 billion (31 December 2017 est.)[5] | |
| +4.4% (of GDP) (2017 est.)[5] | |
| Revenues | 217.1 billion (2017 est.)[5] |
| Expenses | 199.5 billion (2017 est.)[5] |
| Economic aid | $4.0 billion (donor), 1.1% of GDP (2017)[1] |
All values, unless otherwise stated, are inUS dollars. | |
Theeconomy of Norway is ahighly developedmixed economy with state-ownership in strategic areas. Although sensitive to globalbusiness cycles, the economy ofNorway has shown robust growth since the start of theindustrial era. The country has a very highstandard of living compared with other European countries. Norway's modern manufacturing and welfare system rely on a financial reserve produced byexploitation of natural resources, particularlyNorth Sea oil.[19][20][21][22][23] AmongOECD nations, Norway has a relatively efficient and strongsocial security system; social expenditure in 2022 was below the OECD average and stood atroughly 20.7% of GDP.[24]
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Norway was the poorest of the three Scandinavian kingdoms (the others being Denmark and Sweden) during theViking Age.[25]
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. Except for certain fertile areas inHedemarken andØstfold, crops were limited to hardy grains, such as oats, rye, andbarley; and livestock to sheep, goats, cattle, pigs, and some poultry; in places this was complemented withhunting. In areas of Central andNorthern Norway, theSami subsisted on the nomadic herding ofreindeer. Fishing all around the coast was dangerous work, though fish such asherring, cod,halibut, and other cold-water species were found in abundance. The introduction of the potato to Norway, promoted by practical priests and the king in Copenhagen in the 18th century, provided considerable relief and became common food for Norwegians.
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 andwest the primary household subsistence. 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 offeudal system, though several kings did reward land to loyal subjects who becameknights. 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 astenant farmers, and served as the impetus foremigration to North America. Norway, after Ireland, became the country losing the most people to this emigration in percentage relative to its population.
Aside from mining inKongsberg,Røros, andLøkken, industrialization came with the first textile mills that were built in Norway in the middle of the 19th century. But the first large industrial enterprises came into formation when entrepreneurs' politics led 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.
After World War II, theNorwegian Labour Party, withEinar 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.
Highly progressive income taxes, the introduction of value-added tax, and a wide variety of special surcharges and taxes made Norway one of the most heavily taxed economies in the world. Authorities particularly taxed discretionary spending, levying special taxes on automobiles, tobacco, alcohol, cosmetics, etc.
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.
In May 1963, Norway asserted sovereign rights over natural resources in its sector of theNorth Sea. Exploration started on 19 July 1966, whenOcean Traveler drilled its first well.[26] Oil was first encountered at theBalder oil field at flank of theUtsira High, about 190 km west ofStavanger, in 1967.[27] Initial exploration was fruitless, untilOcean Viking found oil on 21 August 1969.[26] By the end of 1969, it was clear that there were large oil and gas reserves in the North Sea. The first oil field wasEkofisk, produced 427,442 barrels (67,957.8 m3) of crude in 1980. Since then, largenatural gas reserves have also been discovered.
Against the backdrop of the Norwegian referendum to not join the European Union, theNorwegian Ministry of Industry, headed byOla Skjåk Bræk moved quickly to establish a national energy policy. Norway decided to stay out ofOPEC, keep its own energy prices in line with world markets, and spend the revenue – known as the "currency gift" –wisely. The Norwegian government established its own oil company,Statoil (now known as Equinor), and awarded drilling and production rights toNorsk Hydro and the newly formedSaga Petroleum. Petroleum exports are taxed at amarginal rate of 78% (standard corporate tax of 24%, and a special petroleum tax of 54%).[28]
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 inStavanger and the western suburbs ofOslo. Stavanger also became the land-based staging area for theoffshore drilling industry. Presently North Sea is past itspeak oil production. New oil and gas fields have been found and developed in the large Norwegian areas of theNorwegian Sea and theBarents Sea, includingSnøhvit.
In September 1972, theNorwegian parliament put to a referendum the question whether Norway should join theEuropean Economic Community. 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 theEuropean Free Trade Association and theEuropean Economic Area.
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 one of only twoNordic countries outside the EU, the other beingIceland.
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:
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.
Several issues have dominated the debate on Norway's economy since the 1970s:
The Norwegian state maintains large ownership positions in key industrial sectors concentrated in natural resources and strategic industries such as the strategic petroleum sector (Equinor), hydroelectric energy production (Statkraft), aluminum production (Norsk Hydro), the largest Norwegian bank (DNB) and telecommunication provider (Telenor). The government controls around 35% of the total value of publicly listed companies on the Oslo stock exchange, with five of its largest seven listed firms partially owned by the state.[29] When non-listed companies are included the state has an even higher share in ownership (mainly from direct oil license ownership). Norway's state-owned enterprises comprise 9.6% of all non-agricultural employment, a number that rises to almost 13% when companies with minority state ownership stakes are included, the highest among OECD countries.[30] Both listed and non-listed firms with state ownership stakes are market-driven and operate in a highly liberalizedmarket economy.[31]
The oil and gas industries play a dominant role in the Norwegian economy, providing a source of finance for the Norwegianwelfare state through direct ownership of oil fields, dividends from its shares in Equinor, and licensure fees and taxes. The oil and gas industry is Norway's largest in terms of government revenue and value-added. The organization of this sector is designed to ensure the exploration, development and extraction of petroleum resources result in public value creation for the entire society through a mixture of taxation, licensing and direct state ownership through a system called the State's Direct Financial Interest (SDFI). The SDFI was established in 1985 and represents state-owned holdings in a number of oil and gas fields, pipelines and onshore facilities as well as 67% of the shares in Equinor. Government revenues from the petroleum industry are transferred to theGovernment Pension Fund of Norway Global in a structure that forbids the government from accessing the fund for public spending; only income generated by the funds' capital can be used for government spending.[32]
The high levels of state ownership have been motivated for a variety of reasons, but most importantly by a desire for national control of the utilization of natural resources. Direct state involvement began prior to the 20th century with the provision of public infrastructure, and expanded greatly into industry and commercial enterprises after the Second World War through the acquisition of German assets in several manufacturing companies. The largest expansion of state ownership occurred with the establishment of Statoil in 1972. Industries and commercial enterprises where the state owns stakes are and market-driven, with marketization extending topublic service providers as well as industry.[31]
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation under 5% is in green.[33]
| Year | GDP (in Bil. US$PPP) | GDP per capita (in US$ PPP) | GDP (in Bil. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in Percent) | Unemployment (in Percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 60.6 | 14,799.8 | 64.4 | 15,746.3 |  4.5% |  10.9% | 1.7% | 47.7% |
| 1981 | 67.4 | 16,399.9 |  63.6 | 15,484.7 | 1.6% | 13.6% | 2.0% |  43.4% |
| 1982 | 71.7 | 17,388.9 | 62.6 | 15,196.3 | 0.2% | 11.3% | 2.6% | 38.5% |
| 1983 | 77.5 | 18,733.9 | 61.6 | 14,906.2 | 4.0% | 8.5% | 3.4% | 35.4% |
| 1984 | 85.1 | 20,527.7 | 62.1 | 14,968.8 | 6.1% | 6.2% | 3.1% | 35.2% |
| 1985 | 92.7 | 22,281.1 | 65.4 | 15,728.2 | 5.6% | 5.7% | 2.6% | 36.9% |
| 1986 | 98.4 | 23,564.6 | 78.7 | 18,853.1 | 4.0% | 7.2% | 2.0% | 46.0% |
| 1987 | 102.6 | 24,428.7 | 94.2 | 22,445.0 | 1.8% | 8.7% | 2.1% | 38.5% |
| 1988 | 105.9 | 25,091.7 | 101.9 | 24,143.1 | -0.3% | 6.7% | 3.1% | 32.4% |
| 1989 | 111.2 | 26,269.0 | 102.6 | 24,245.4 | 1.0% | 4.5% | 4.9% | 32.3% |
| 1990 | 117.6 | 27,669.5 | 119.8 | 28,187.2 | 1.9% | 4.1% | 5.2% | 28.9% |
| 1991 | 125.3 | 29,320.7 | 121.9 | 28,514.5 | 3.1% | 3.4% | 5.5% | 39.2% |
| 1992 | 132.8 | 30,878.7 | 130.8 | 30,432.9 | 3.6% | 2.3% | 5.9% | 45.0% |
| 1993 | 139.8 | 32,317.7 | 120.6 | 27,880.6 | 2.8% | 2.3% | 5.9% | 53.7% |
| 1994 | 150.0 | 34,488.5 | 127.1 | 29,236.4 | 5.1% | 1.4% | 5.4% | 50.6% |
| 1995 | 159.5 | 36,494.1 | 152.0 | 34,790.0 | 4.2% | 2.5% | 4.9% | 32.7% |
| 1996 | 170.6 | 38,828.6 | 163.5 | 37,225.3 | 5.0% | 1.3% | 4.8% | 28.4% |
| 1997 | 182.7 | 41,391.4 | 161.4 | 36,561.4 | 5.3% | 2.6% | 4.0% | 25.8% |
| 1998 | 189.6 | 42,692.1 | 154.2 | 34,717.1 | 2.6% | 2.3% | 3.2% | 23.6% |
| 1999 | 196.1 | 43,841.6 | 162.3 | 36,278.3 | 2.0% | 2.4% | 3.2% | 25.0% |
| 2000 | 207.0 | 45,989.4 | 171.2 | 38,047.9 | 3.2% | 3.1% | 3.4% | 28.7% |
| 2001 | 216.0 | 47,803.6 | 174.0 | 38,494.7 | 2.1% | 3.0% | 3.5% | 27.3% |
| 2002 | 222.6 | 48,948.7 | 195.5 | 42,998.0 | 1.4% | 1.3% | 3.9% | 34.0% |
| 2003 | 229.0 | 50,086.8 | 228.9 | 50,046.3 | 0.9% | 2.5% | 4.5% | 43.2% |
| 2004 | 244.5 | 53,167.4 | 264.5 | 57,512.2 | 4.0% | 0.5% | 4.5% | 44.0% |
| 2005 | 258.8 | 55,878.3 | 308.9 | 66,687.8 | 2.6% | 1.5% | 4.6% | 42.5% |
| 2006 | 273.2 | 58,478.9 | 345.6 | 73,970.2 | 2.4% | 2.3% | 3.4% | 52.8% |
| 2007 | 289.0 | 61,205.9 | 400.9 | 84,915.6 | 3.0% | 0.7% | 2.5% | 49.7% |
| 2008 | 295.9 | 61,820.4 | 462.3 | 96,563.2 | 0.5% | 3.8% | 2.7% | 47.8% |
| 2009 | 292.7 | 60,439.5 | 386.2 | 79,746.9 | -1.7% | 2.2% | 3.3% | 42.7% |
| 2010 | 298.3 | 60,773.6 | 428.8 | 87,356.2 | 0.7% | 2.4% | 3.8% | 43.2% |
| 2011 | 307.5 | 61,827.8 | 498.3 | 100,197.2 | 1.0% | 1.3% | 3.4% | 29.8% |
| 2012 | 328.0 | 65,101.0 | 509.5 | 101,129.9 | 2.7% | 0.7% | 3.3% | 31.1% |
| 2013 | 340.1 | 66,742.1 | 522.8 | 102,576.7 | 1.0% | 2.1% | 3.8% | 31.6% |
| 2014 | 338.5 | 65,647.1 | 498.4 | 96,657.6 | 2.0% | 2.0% | 3.6% | 29.9% |
| 2015 | 313.3 | 60,189.9 | 385.8 | 74,115.2 | 2.0% | 2.2% | 4.5% | 34.5% |
| 2016 | 308.5 | 58,735.9 | 368.8 | 70,223.8 | 1.1% | 3.6% | 4.7% | 38.1% |
| 2017 | 332.1 | 62,782.1 | 398.4 | 75,306.7 | 2.3% | 1.9% | 4.2% | 38.6% |
| 2018 | 343.9 | 64,590.3 | 437.0 | 82,082.1 | 1.1% | 2.8% | 3.9% | 39.7% |
| 2019 | 352.6 | 65,829.9 | 404.9 | 75,594.0 | 0.7% | 2.2% | 3.7% | 40.9% |
| 2020 | 354.3 | 65,804.0 | 362.2 | 67,265.9 | -0.7% | 1.3% | 4.6% | 46.8% |
| 2021 | 383.4 | 70,796.1 | 482.2 | 89,041.6 | 3.9% | 3.5% | 4.4% | 43.4% |
| 2022 | 425.6 | 78,127.6 | 504.7 | 92,646.0 | 3.6% | 4.7% | 3.9% | 40.3% |
| 2023 | 452.1 | 82,496.2 | 486.4 | 88,748.8 | 2.6% | 3.8% | 3.8% | 39.5% |
| 2024 | 471.9 | 85,599.5 | 495.1 | 89,809.9 | 2.2% | 2.7% | 3.7% | 39.2% |
| 2025 | 488.4 | 88,050.6 | 502.8 | 90,663.8 | 1.6% | 2.5% | 3.7% | 38.7% |
| 2026 | 504.0 | 90,331.6 | 509.6 | 91,330.9 | 1.3% | 2.0% | 3.7% | 38.2% |
| 2027 | 520.4 | 92,711.2 | 522.6 | 93,107.3 | 1.3% | 2.0% | 3.7% | 37.7% |
In 2022, the sector with the highest number of companies registered in Norway is Services with 296,849 companies followed by Finance, Insurance, and Real Estate with 118,411 companies respectively.[34]
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.
Because of the oil boom since the 1970s, there has been little 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 decades 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. In 2006, the Norwegian government formed nine "centers of expertise" to facilitate this business growth.[35] Later in June 2007, the government contributed to the formation of the Oslo Cancer Cluster (OCC) as a center of expertise, capitalizing on the fact that 80% of cancer research in Norway takes place in proximity to Oslo and that most Norwegian biotechnology companies are focused on cancer.[35]
Pesticide usage information for the entire country is available fromStatistics Norway.[36]
Overall the risk ofantimicrobial resistance in the foodsupply chains is "negligible". Specifically cattle, milk/dairy products, fish, seafood, drinking water, and pork are considered to be negligible risks. On the other hand, there is a more-than-negligible risk from contact with live pigs (farming and processing them), live poultry, and poultry meat.[37]
A warmer climate will have its pros and cons for the Norwegian agriculture. Higher temperatures combined with new types of plants adapted to the milder climate may yield larger harvests and possibly making two harvests possible per year. Theimpact of climate change will vary between regions as there are already today a lot of local differences in precipitation etc. An earlier time of snow melting in areas with a dry climate may lead to crops drying out and dying. In wetter regions, further increased precipitation may cause outbreaks of fungus invasion on crops.
| Region | GDP per capita 2015 | ||
|---|---|---|---|
| in euros | As % of EU-28 average | ||
 European Union | 29,000 | 100% | |
 Norway | 46,300 | 160% | |
| Richest | Oslo andAkershus | 51,800 | 178% |
| Agder andRogaland | 40,600 | 140% | |
| Vestlandet | 39,400 | 136% | |
| Trøndelag | 35,500 | 122% | |
| Nord-Norge | 33,500 | 115% | |
| Sør-Østlandet | 30,000 | 103% | |
| Poorest | Hedmark andOppland | 29,100 | 100% |
Source: Eurostat[38]
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