Norway's Economy

GDP per Capita

GDP per Capita Items

  1. Oil
  2. Natural Gas
  3. Aluminum
  4. Shipping
  5. Textile
  6. Furniture

Norway's economy loses its shine

In the first article, Norway's economy loses its shine, Norway’s economy had fallen because of the drop in oil prices. They are Europe’s biggest producer of oil and natural gas. Norway was decreasing also because of China’s slowing economy, which effected the world economy. The consumer confidence also dropped to a new 24 year low by 16.2 points in the current quarter.

Norway seeks to diversify its economy as oil earnings plunge

As the oil prices drop, Norway seeks to change and diversify its economy. The article states that their economy had become imbalanced from the rapid drop in the oil and gas prices. Their unemployment had also hit a new high since 1995 and in order to help stimulate the economy they decided to use the oil fund and reduce the interest rates and cut taxes.

Business Cycle

I believe that Norway would be at a peak or beginning of a contraction period. I think that because of how the drop in oil prices has affected their economy.
  • Capital Deepening: Through capital deepening, Norway's economy could become even better through the advancement of technology. By doing so, it would improve the efficiency of the workers and business. With the increase in efficiency they would profit more as a country as well as an individual.
  • Savings\Investments: With the added profit from capital deepening the banks would see an increase in the amount of funding because people would be profiting more. From the increase, more funding for loans would become available and further help the economy.
  • Technological Progress: The advancement of technology would further increase the output and thus create more profit for the company and businesses thus creating more money for the employees. With that money, people would likely spend it or save it in a bank giving the bank for access to funding and loans. That would also help with or create capital deepening.