- published: 12 Sep 2013
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The economy of Norway is a developed mixed economy with heavy state-ownership in strategic areas of the economy. Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era. Shipping has long been a support of Norway's export sector, but much of Norway's economic growth has been fueled by an abundance of natural resources, including petroleum exploration and production, hydroelectric power, and fisheries. Agriculture and traditional heavy manufacturing have suffered relative decline compared to services and oil-related industries, and the public sector is among the largest in the world as a percentage of the overall gross domestic product. The country has a very high standard of living compared with other European countries, and a strongly integrated welfare system.
Prior to the industrial revolution, Norway's economy was largely based on agriculture, timber, and fishing. Norwegians typically lived under conditions of considerable scarcity, though famine was rare. Except for certain fertile areas in Hedemarken and Østfold, crops were limited to hardy grains, such as oats, rye, and barley; and livestock to sheep, goats, cattle, pigs, and some poultry; in places this was complemented with hunting. In areas of Central and Northern Norway, the Sami subsisted on the nomadic herding of reindeer. Fishing all around the coast was dangerous work, though fish such as herring, cod, halibut, and other cold-water species were found in abundance. The introduction of the potato to Norway (in the 18th century) provided considerable relief for Norwegians.
Norway i/ˈnɔrweɪ/ (Norwegian: Norge (Bokmål) or Noreg (Nynorsk)), officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, the Arctic archipelago of Svalbard and the subantarctic Bouvet Island. Norway has a total area of 385,252 square kilometres (148,747 sq mi) and a population of about 5 million. It is the second least densely populated country in Europe. The majority of the country shares a border to the east with Sweden; its northernmost region is bordered by Finland to the south and Russia to the east; in its south Norway borders the Skagerrak Strait across from Denmark. The capital city of Norway is Oslo. Norway's extensive coastline, facing the North Atlantic Ocean and the Barents Sea, is home to its famous fjords.