Economy-overview: Norway is a prosperous bastion of welfare capitalism. The economy consists of 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 maintains an extensive welfare system that helps propel public sector expenditures to more than 50% of GDP and results in one of the highest average tax levels in the world. 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. Only Saudi Arabia exports more oil than Norway. Norway imports more than half its food needs. Oslo opted to stay out of the EU during a referendum in November 1994. Economic growth in 1998 should be about the same as in 1997. Inflation probably will move up toward 3% because of tightness in labor markets. Despite their high per capita income-outstripped among major nations only by the US-and their generous welfare benefits, Norwegians worry about that time in the 21st century when the oil and gas run out.
GDP: purchasing power parity-$120.5 billion (1997 est.)
GDP-real growth rate: 3.5% (1997 est.)
GDP-per capita: purchasing power parity-$27,400 (1997 est.)
GDP-composition by sector: agriculture: 2.9% industry: 34.7% services: 62.4% (1991)
Inflation rate-consumer price index: 2% (1997 est.)
Labor force: total: 2.13 million by occupation: services 71%, industry 23%, agriculture, forestry, and fishing 6% (1993)
Unemployment rate: 2.6% (yearend 1997)
Budget: revenues: $48.6 billion expenditures: $53 billion, including capital expenditures of $NA (1994 est.)
Industries: petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing