rge-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. Overall economic growth is expected to be around 2% in 1993
while inflation is likely to rise slightly to 4%. Oslo, a member of the
European Free Trade Area, has applied for EC membership and continues to
deregulate and harmonize with EC regulations to prepare for the European
Economic Area (EEA) - which creates an EC/EFTA market with free movement of
capital, goods, services, and labor - to take effect in late 1993 and its EC
bid.
National product:
GDP - purchasing power equivalent - $76.1 billion (1992)
National product real growth rate:
2.9% (1992)
National product per capita:
$17,700 (1992)
Inflation rate (consumer prices):
2.3% (1992)
Unemployment rate:
5.9% (excluding people in job-training programs) (1992)
Budget:
revenues $50.6 billion; expenditures $57.0 billion, including capital
expenditures of $NA (1992)
Exports:
$35.3 billion (f.o.b., 1992)
commodities:
petroleum and petroleum products 37.8%, metals and products 10.7%, natural
gas 7.3%, fish 6.6%, chemicals 6.3%, ships 5.4%
partners:
EC 67%, Nordic countries 18.2%, developing countries 7.9%, US 5.1%, Japan
1.6%