Case studyNorway
S2C5 Kevin Xiao
Basic information
• Nor way, officially the Kingdom of Nor way, is
a Nordic countr y in Nor thern Europe.
• Capital: Oslo
• As a highly developed capitalistic countr y and a
highly industrialized countr y, Nor way is the largest
oil producer in Western Europe. The petroleum
industr y of Nor way is counted as an impor tant par t
of the countr y’s economy. Nor way was also one of
the pioneers in creating the modern welfare countr y.
Economy Structure
• The economy of Norway is a highly developed mixed economy with
state ownership in strategic areas.
• The country has a ver y high standard of living compared with other
European countries, and a strongly integrated welfare system.
Key Economic Variables
Gross Domestic
product (GDP)
Key Economic Variables-Real GDP
Key Economic Variables
GDP Per Capita
Population: 5,425,270
The GDP Decline
• Norway is the biggest gas export countr y in western Europe, so the
price of the gas influence a lot on the country’s GDP. The price of gas
has a dramatic decrease in 2015, which causes the GDP to go down. It
was because when the price goes down, the revenue that the industr y
is paid is also fallen, which is shown in the decline of the GDP.
The GDP Decline
•
The second decline occurs in 2020, which is
caused by the Pandemic. The pandemic will
cause cyclical unemployment, the aggregate
demand shift to the left, the aggregate supply
shift to the left and leads to a decline in the
GDP.
•
The Ad curve shift to the left. Under the
pandemic, the willing of people to purchase
things will decrease because people’s
expectation to the future is worse.
•
The As curve shift to the left. Under the
pandemic, the cost of import raw materials
increase. As a highly developed industrialized
country, Norway usually import raw materials
and manufacture products and export it to
other countries. However, owing to the cost
of importation increase, the cost of
production increase which leads to the As
curve to shift to the left.
Key Economic Variables
Unemployment
rate
There are a significant
cyclical unemployment
occurred in 2020
because of the
pandemic.
Key Economic Variables
Labor force
participation rate
Key Economic Variables
-Inflation rate
• The inflation rate staying in 2.5-5.3
recently, showing that the economy is
recovering at a modest speed.
• When the economy is not running at
capacity, meaning there is unused labor
or resources, inflation theoretically helps
increase production. More money could
cause more spending and leads to the
increase of the aggregated demand.
More demand, in turn, triggers more
production to meet that demand.
Key Economic Variables
CPI&PPI
Income distribution
The Gini
Coefficient
Norway has developed
education systems and
social welfare systems, so
the gap between poor and
the rich is small, which
means the Gini coefficient
is relatively small.
Happiness
Index
• The World Happiness Index is an
indicator of global happiness. The
rankings are based on reports of
respondents’ assessments of their
own lives, and articles on national
happiness are included. The report
also compares with other elements
that influence (quality of) life.
Moving to a Greener Economy
Moving to a Greener Economy
Reference list
• https://www.oecd.org/economy/nor way-economic-snapshot/
• https://www.heritage.org/index/countr y/nor way
• https://www.focus-economics.com/countries/nor way
• https://dmerhar yana.org/world-happiness-index/
• https://data.worldbank .org/indicator/SI.POV.GINI?locations=NO