Economy, Overview

During the 19th century most Norwegians worked in farming, forestry, or fishing. During the 20th century Norway rapidly industrialized. Until the 1970s this industrial expansion was based mainly on the availability of inexpensive waterpower resources and raw materials harvested from Norway’s farms, forests, and seas. During the 1970s offshore drilling for oil and natural gas expanded rapidly, providing a new source of energy for industrial growth and allowing Norway to enlarge its already extensive social welfare system. Norway’s economy has since grown dependent on oil and natural gas production and is subject to fluctuations in foreign oil prices. Norwegian voters have consistently rejected membership in the European Union (EU), but Norway is a member of a free-trade zone called the European Economic Area (EEA), which gives the country access to the EU’s vast single market. Today, Norway enjoys one of the highest standards of living in the world; estimated gross domestic product (GDP) per capita in 2000 was $36,020. National budget estimates for 1998 showed $61.5 billion in revenues and $54.6 billion in expenditures. In 2000 Norway’s GDP was $161.8 billion.