The Economy of Norway

The Norwegian economy is very prosperous and based on welfare capitalism, featuring a combination of free market activity and government intervention. The country is richly endowed with natural resources—petroleum, hydropower, fish, forests, and minerals—and is highly dependent on its oil production and international oil prices, with oil and gas accounting for one-third of exports. Annual oil revenue amounts to around $40bn (£21bn). Norway is also among the world's largest exporters of fuels and fuel products.

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. The government has moved ahead with privatization.

Norwegians realize that once their gas production peaks they will eventually face declining oil and gas revenues; accordingly, Norway has been saving its oil-and-gas-boosted budget surpluses.

Norway's economy remains buoyant. Domestic economic activity is, and will continue to be, the main driver of growth, supported by high consumer confidence and strong investment spending in the offshore oil and gas sector.

The currency of Norway is the Norwegian krone.