Question

What is current economic background of Norway?

Please write economic data as well as an analysis of what they mean economically and socially.

Answer 1

Norway is an advanced mixed economy with the presence of both private sector as well as a relatively large government sector. With the GDP per capita of $70,000, the country is a very high income economy. The country has huge natural resources, especialy crude oil which has significantly ( 40% ) contributed to its exports.

After facing contraction in economic growth in 2009 due to the global financial crisis, the economy has seen a robust growth from 2010. Inflation rate revolving at around 2% is well under control, and exports have consistently been averaging above $100 billion annually. Services' sector contribution in GDP was 64%, Industry's 34.7% and that of agriculture was 1.6% in 2017. The unemployment rate in Mrach 2020 was 3.6%.

The country's social indicators such as Gini coeffiicient which is 24.8 which shows the country doesn't have too large a difference in income distribution amongst people. Likewise, Human Development Index at 0.954 shows that the country is one of the most advanced, prosperous and socially developed economy in the world.

Overall, we can say that the country's economy is a robust economy which is growing sustainably and in near future is expected to remain so. However, the country's exports of petroleum products which constitutes 40% of total exports is point of concern. The country must look for diversifying its exports and production of goods and services.