<hdr>The World Factbook 1994: Norway<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> 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.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$89.5 billion (1993)
<item><hi format=bold>National product real growth rate:</hi> 1.6% (1993)
<item><hi format=bold>National product per capita:</hi> $20,800 (1993)
<item>• <hi format=ital>commodities:</hi> petroleum and petroleum products 40%, metals and products 10.6%, fish and fish products 6.9%, chemicals 6.4%, natural gas 6.0%, ships 5.4%
<item>• <hi format=ital>partners:</hi> EC 66.3%, Nordic countries 16.3%, developing countries 8.4%, US 6.0%, Japan 1.8% (1993)
<item>• <hi format=ital>consumption per capita:</hi> 25,850 kWh (1992)
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<item><hi format=bold>Industries:</hi> petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing
<item><hi format=bold>Agriculture:</hi> accounts for 3% of GDP and about 6% of labor force; among world's top 10 fishing nations; livestock output exceeds value of crops; over half of food needs imported; fish catch of 1.76 million metric tons in 1989
<item><hi format=bold>Illicit drugs:</hi> transshipment point for drugs shipped via the CIS and Baltic states for the European market
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>donor:</hi> ODA and OOF commitments (1970-89), $4.4 billion
