Norway has one of the biggest GDP per Capita in the world. On 2010 was ranked number 4.It was the only western industrialized country in the world that wasn’t heavily affected by 2009 crisis. We will analyze the main economic indicators such as GDP, Inflation, Production, Labor Force, Debt, and Commercial Balance.
Brief Historyof Norway page 4
GDP page 5
Inflation page 11
Interest rates page 16
Purchasing power page 19
Government Revenue & Expenditure page 20
Debt page 26
Commerce page 28
Conclusion page 31
Bibliography page 32
Brief History of Norway.
The Nordic populations which live on the west coast of the Scandinavian Peninsula started appearing on western history around the 800 AD whenVikings raids initiated. The Norwegian Kingdom was established around 11th century.
They invented longboats with which they used to travel long distances in relatively small amount of time. As raids became more and more frequent, the Nordic people started to expand and found cities outside the Scandinavian Peninsula. They also stayed on the conquered cities such as York on the British Isles. Theyalso made Dublin a mayor colony. Norse also went down to modern Germany, Russia, and the north of France. The region “Normandy” on modern France came from the Vikings staying in that place.
From this colonies Norwegian people refines their trade abilities. They started to build cargo ships and defining ruts of trade both in winter and spring. Ports started to appear on Trondheim and Oslo. TheNorse also opened trade ruts as far as the Mediterranean Sea. They traded with Sicilians, Spaniards, Morocco, Italy, and Greece among other nations on Europe, Africa and Asia Minor.
On the 14th century, the black plague stroked Norway really hard. Killing as many as half its population. From there Norway entered a period of decline until the appearance of Christina the Magnificent. On the late 14thcentury Norway entered the Kalmar Union or mostly known as the Norwegian-Dane Union. Actually Norway was a tributary of Denmark. Denmark-Norway Union entered the Napoleonic Wars on the side of Napoleon resulting in a British port blockade producing massive inflation and starvation.
On 1814 Norway was forced to unify with Sweden, although maintaining their constitution. From this period to presenttime, Norway started to really become the wealthy and healthy country that it is today.
Gross Domestic Product: It’s the total value of all which certain country produces on a certain year. The formula to calculate it, is: total consumption + investment + government spending, plus the value of exports, minus the value of imports.
Here is a graph showing the GDP trending up to 2008previous financial crisis.
We can see that there has been a constant and exponential growth of GDP from 2000. This is partially because of the constant increase of oil prices but also because of Norway’s increase on good quality services industry.
On 2009 Norway had a slight decrease on GDP growth because of the crisis. Nevertheless at the end of 2009 Norway started to see growth again in GDPthanks to the government. They lowered interest rates to 1.5% and increased government spending.
Comparing Norway with other European nations on 2009 we can see that they were the best performers.
This data table shows in a red circle the percentage of real GDP growth of Norway on 2009. We can see that they had -1.4% GDP drawbacks.
The other industrialized countries in Europe had higherdrawbacks. The only country on the European Zone which had better performance was Macedonia which is not considered a highly- industrialized country as of i.e. Germany, France, England.
GDP Per Capita.
Norway has been 10 years straight a top 8 GDP per capita countries among all.
On this figures we can see a constant growth of the GDP per capita among Norwegian population. On 2008 we see the...