og (Danish flag)

@Norway, Economy

Overview:
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. 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
continues at record levels of over 10% - including those in job
programs - because of the weakness of the economy outside the oil
sector. Economic growth was only 1.6% in 1993, while inflation was a
moderate 2.3%. Oslo, a member of the European Free Trade Area, has
applied for membership in the European Union and continues to
deregulate and harmonize with EU regulations. Membership is expected
in early 1995.
National product:
GDP - purchasing power equivalent - $89.5 billion (1993)
National product real growth rate:
1.6% (1993)
National product per capita:
$20,800 (1993)
Inflation rate (consumer prices):
2.3% (1993 est.)
Unemployment rate:
5.5% (excluding people in job-training programs; 1993 est.)
Budget:
revenues:
$45.3 billion
expenditures:
$51.8 billion, including capital expenditures of $NA (1993)
Exports:
$32.1 billion (f.o.b., 1993)
commodities:
petroleum and petroleum products 40%, metals and products 10.6%, fish
and fish products 6.9%, chemicals 6.4%, natural gas 6.0%,