Norway

Bar Graph of Norway Economic Freedom Scores Over a Time Period
Quick Facts
  • Population:
      5.1 million
  • GDP (PPP):
      $280.0 billion 0.8% growth 0.8% 5-year compound annual growth $54,947 per capita
  • Unemployment:
      3.5%
  • Inflation (CPI):
      2.1%
  • FDI Inflow:
      $9.3 billion
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Norway’s economic freedom score is 71.8, making its economy the 27th freest in the 2015 Index. Its score has increased by 0.9 point since last year, with solid improvements in six of the 10 economic freedoms, including labor freedom, monetary freedom, and the management of public spending, outweighing a decline in freedom from corruption. Norway is ranked 15th out of 43 countries in the Europe region, and its overall score is well above the world and regional averages.

Improvements in the regulatory environment and trade freedom have caused Norway’s economic freedom score to expand by 1.1 points over the past five years. The only decline was in government spending as the government responded to low economic growth with additional

spending.

Steady improvements in the 10 economic freedoms have underlined Norway’s development of strong institutions. A small, open economy, Norway has low barriers to entry for foreign businesses and an investment regime that encourages international participation. The business environment is welcoming to new entrepreneurs, although the labor code remains rigid. High taxes and government spending are supplemented by the world’s largest sovereign wealth fund. The property rights regime is the world’s second best.

Background

Norway has been a member of NATO since 1949. Voters have twice rejected membership in the European Union, but Norway is a party to a European Free Trade Association agreement. Prime Minister Erna Solberg of the Conservative Party was elected in September 2013 to lead a new center-right coalition minority government. Solberg’s government has promised to lower taxes, decrease reliance on oil production, increase investment in infrastructure, and curtail immigration. Norway is one of the world’s most prosperous countries. Fisheries, metal, and oil are the most important commodities. Norway saves a large portion of its petroleum-sector revenues, including dividends from the partially state-owned Statoil and taxes from oil and gas companies operating in Norway, in its Government Pension Fund–Global.

Source: www.heritage.org

Category: Bank

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