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Norway

Norway Economy Stats

jaacosta47

Author: jaacosta47

Consecutive Norwegian governments have pledged to save the country’s wealth for the welfare of forthcoming generations. Yet, there have been questions about the country’s handling of its oil industry. There are misgivings about the government’s ability to take care of the extensive Norwegian Oil Fund.

The oil fund is said to be too large for such a small population. Take a look at the following statistics: At 3/4 of $1 trillion, the NOF seems to be excessive for Norway that only has 5 million citizens. Paradoxically, the country has a foreign debt of $657 billion. Subtracting the debt from the fund’s $740 billion leaves a balance of only $83 billion.

Norway's energy boom exposed an economy which is not ready for life after oil. This imperils the long-lasting feasibility of the most laissez-faire welfare model in the world. High spending has bolstered wages and other costs to shaky levels. This is big concern for the oil and gas industries as well as other sectors. It has become a barrier to additional energy investments. Other Norwegian firms outside the oil sector have been finding it hard to accelerate an economy that depends on exports.

The Organization for Economic Cooperation and Development in its World Economic Outlook report has issued a stern warning to the Norwegian Government regarding hazards that may endanger the local economy. These two “risk factors” are the real estate industry and prices of crude oil.

Norway is ranked second in the list of the world’s most expensive economies. Switzerland is number one while Bermuda, Australia and Denmark are the other three. These figures came from the World Bank.

Overview:

The Norwegian economy is a prosperous bastion of welfare capitalism, featuring a combination of free market activity and government intervention. The government controls key areas, such as the vital petroleum sector, through large-scale state-majority-owned enterprises. The country is richly endowed with natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on the petroleum sector, which accounts for nearly half of exports and over 30% of state revenue. Norway is the world's second-largest gas exporter; its position as an oil exporter has slipped to ninth-largest as production has begun to decline. Norway opted to stay out of the EU during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizably to the EU budget. In anticipation of eventual declines in oil and gas production, Norway saves state revenue from the petroleum sector in the world's second largest sovereign wealth fund, valued at over $500 billion in 2010. After solid GDP growth in 2004-07, the economy slowed in 2008, and contracted in 2009, before returning to positive growth in 2010.

Definitions

  • Debt > External: Total public and private debt owed to non-residents repayable in foreign currency, goods, or services.
  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • Fiscal year: The beginning and ending months for a country's accounting period of 12 months, which often is the calendar year but which may begin in any month. All yearly references are for the calendar year (CY) unless indicated as a noncalendar fiscal year (FY).
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller.
  • GDP > Real growth rate: GDP growth on an annual basis adjusted for inflation and expressed as a percent.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Tourist arrivals: International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead. Sources and collection methods for arrivals differ across countries. In some cases data are from border statistics (police, immigration, and the like) and supplemented by border surveys. In other cases data are from tourism accommodation establishments. For some countries number of arrivals is limited to arrivals by air and for others to arrivals staying in hotels. Some countries include arrivals of nationals residing abroad while others do not. Caution should thus be used in comparing arrivals across countries. The data on inbound tourists refer to the number of arrivals, not to the number of people traveling. Thus a person who makes several trips to a country during a given period is counted each time as a new arrival."
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Debt > External $659.10 billion 2012 19th out of 172
Exports $166.00 billion 2012 29th out of 189
Fiscal year calendar year 2013
GDP $499.67 billion 2012 23th out of 177
GDP > Composition by sector > Industry 41.5% 2012 26th out of 217
GDP > Per capita $53,285.21 per capita 2007 4th out of 183
GDP > Per capita > PPP $54,400.00 2012 4th out of 188
GDP > Purchasing power parity $274.10 billion 2012 44th out of 190
GDP > Real growth rate 3% 2012 101st out of 191
GDP per capita $99,557.73 2012 2nd out of 177
Gross National Income $161.00 billion 2001 25th out of 158
Inflation rate > Consumer prices 0.7% 2012 191st out of 199
Public debt 29.1% of GDP 2012 116th out of 149
Tourist arrivals 4.44 million 2008 41st out of 145
Unemployment rate 3.2% 2012 101st out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; All CIA World Factbooks 18 December 2003 to 18 December 2008; World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Tourism Organisation, Yearbook of Tourism Statistics, Compendium of Tourism Statistics and data files.

Citation

"Norway Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Norway/Economy

NationMaster

Norway Economy Profiles (Subcategories)

Adjusted savings 3 Innovation 31
Aid 6 Interest payments 3
Balance of payments 28 International tourism 14
Budget 10 Investment 3
Business 3 Labor force 3
Changes in net 4 Market capitalization of listed companies 4
Commercial service 4 Merchandise 4
Commercial service imports 4 Merchandise imports 4
Commitment to Development Index 4 Micro 4
Companies 30 National accounts 104
Consumption 10 Natural gas 8
Currency 15 Net capital account 4
Current account balance 5 Net current transfers 4
Current transfers 4 Net current transfers from abroad 6
Debt 52 Net errors and omissions 4
Economic aid 3 Net income 4
Economic growth 8 Net income from abroad 6
Economic structure 4 Net incurrence of liabilities 3
Electricity 8 Net trade in goods 4
Entrepreneurship 12 Net trade in goods and services 4
Exports 3 Oil 10
External balance on goods and services 7 Portfolio investment 4
Final 20 Poverty 3
Financial sector 33 Poverty and inequality 6
Foreign direct investment 14 Public expenditure 4
GDP 42 Purchasing power parity 11
GDP growth 4 Reserves 6
GDP per capita 4 Retail 3
GNI 12 Royalty and license fees 8
Goods 4 Savings 44
Goods imports 4 Service 4
Government 15 Service imports 4
Government debt 8 Services 10
Government deficits and debt 4 Spending 73
Government spending 5 Stock of direct foreign investment 6
Gross capital formation 10 Stocks traded 5
Gross domestic savings 6 Support and aid 6
Gross fixed capital formation 10 Tax 81
Gross national expenditure 9 Taxes 3
Gross savings 6 Total 9
Gross value added at factor cost 9 Tourism 21
High-technology 4 Tourism expenditures 5
Household final 23 Tourism receipts 5
Income 24 Tourist arrivals by region of origin 5
Income distribution 4 Trade 1628
Income payments 4 Trademark applications 4
Income receipts 4 Transnational corporations 4
Inequality 13 Welfare 5
Inflation 11

5

Consecutive Norwegian governments have pledged to save the country’s wealth for the welfare of forthcoming generations. Yet, there have been questions about the country’s handling of its oil industry. There are misgivings about the government’s ability to take care of the extensive Norwegian Oil Fund.

The oil fund is said to be too large for such a small population. Take a look at the following statistics: At 3/4 of $1 trillion, the NOF seems to be excessive for Norway that only has 5 million citizens. Paradoxically, the country has a foreign debt of $657 billion. Subtracting the debt from the fund’s $740 billion leaves a balance of only $83 billion.

Norway's energy boom exposed an economy which is not ready for life after oil. This imperils the long-lasting feasibility of the most laissez-faire welfare model in the world. High spending has bolstered wages and other costs to shaky levels. This is big concern for the oil and gas industries as well as other sectors. It has become a barrier to additional energy investments. Other Norwegian firms outside the oil sector have been finding it hard to accelerate an economy that depends on exports.

The Organization for Economic Cooperation and Development in its World Economic Outlook report has issued a stern warning to the Norwegian Government regarding hazards that may endanger the local economy. These two “risk factors” are the real estate industry and prices of crude oil.

Norway is ranked second in the list of the world’s most expensive economies. Switzerland is number one while Bermuda, Australia and Denmark are the other three. These figures came from the World Bank.

Posted on 25 May 2014

jaacosta47

jaacosta47

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