Introduction

Norway is one of the countries that has a highly developed economy and high standards

of living. Norway is rich in natural resources because of the proper utilization by the Norwegian

government. Norway’s abundant number of resources makes their economy prosper. Oil, gas,

seafood, and products from energy-intensive industries contribute to their economic growth. In

this paper, the Norway’s economic growth, agriculture, industry, services and types of

resources that can be found in their region will be examine and explain.

Norway’s Developmental History from the Last 25 Years

In 1998, the recorded GDP growth of Norway was only 2.7 due to the fluctuations in

oil prices and the lower exchange of oil barrels. This year the cost of a barrel of oil is 10 dollars.

Due to this sharp decline, the revenue and GDP growth suffers. The lower GDP growth in 1998

can be largely attributed to the significant drop in global oil prices, which had a direct and

substantial effect on Norway's oil-dependent economy.

In the year 1999, the oil prices recovered somewhat after the 1998 drop. Although the

oil prices recovered, this doesn’t mean that Norway's GDP growth recovered. According to Yu
Chen, Shiyang Dong, Siqi Qian, and Kai Chung (2024), the oil sector's volatility continued to

influence Norway's economy. Fluctuations in oil and gas production and related investments

can significantly impact GDP. The other factor why the GDP growth of Norway dropped from

2.7 to 2.1 is due to the mainland economy. The performance of the mainland economy affects

the GDP growth because of domestic consumption and investments. Because of this, other than

natural resources, the things that must be considered in looking at GDP growth are the key roles

of these elements. In the year 2000, Norway became prosperous because the recorded GDP

growth from the World Bank was 3.3, compared to the 1999 GDP.

The factors of this growth development are the recovery of oil prices, increased export

values, domestic consumption, and global economic factors. The strong GDP growth in 2000

was largely fueled by the rebound in oil prices and the resulting surge in export values,

complemented by steady domestic consumption (The Norwegian Economy and Business

Sector, n.d.-c). But despite the fast GDP growth recovery of 2000, the economy of Norway

once turn upside down again. In the year 2001 GDP growth was once became 2.1 due to the

global economic downturn. The changes in domestic factors such as investments and

consumption were one of the reasons why the GDP growth decreased. Also, the volatility of

the oil market is the other reason why Norway’s GDP growth decreased to 2.1. Norway's GDP

growth in 2001 was largely influenced by the broader global economic downturn, which

affected demand for Norway's exports and contributed to fluctuations in the oil market.

The GDP growth of Norway continues to decline up to the year 2003. Compared to the

year 2000, it was the highest. In the year 2002, the recorded GDP growth was 1.4 it further

down in this period due to the sudden changes in consumption, exports, global economic

change, and world events. The aftermath of the 2001 dot-com bubble burst created continued

global economic uncertainty. This led to a general slowdown in international trade, which

affected Norway's export-oriented economy. This global uncertainty also had effects on
investments, and general business confidence, which in turn would harm GDP growth. While

Norway's oil and gas sector is a major economic driver, it's also subject to price

volatility. Fluctuations in oil prices can significantly impact Norway's GDP. Even if there was

not a large drop in oil prices, any slowing of the growth of that sector would have a noticeable

effect (The Role of Oil Prices in Norwegian Petroleum Investments, 2024). This decline

continues further to 2003 with a recorded GDP growth of 0.9.

The year 2004 recorded the highest GDP growth of 4. With the increased demand for

oil and petroleum and as a result, the GDP growth of that year increased. Rising global oil

prices in 2004, the global oil demand was on the rise, which led to increasing oil prices. This

positively impacted Norway's revenues and thus its GDP. Other than booming oil demand, the

mainland economy of Norway at that time also increased. The investments in domestic and

consumption have also helped the economy of Norway that year. Despite being the highest

growth, the year 2005 GDP growth once again declined by 2.7 and it continued to drop until

2006. In the year 2007, the growth increased by 2.9. By the year 2008, the GDP growth declined

and it continued to drop until the year 2009 by -1.9 which is the lowest GDP growth in these

25 years. One of the reasons why GDP growth declined drastically is because of the global

financial crisis of 2008 which caused a ripple effect to the Norwegian economy.

The year 2010 was a success for the GDP growth of Norway. The recorded growth was

0.8, which is good because the economy is now in the recovery phase after the global financial

crisis of 2008. It continued to increase until 2012 by 2.7 GDP growth. Due to the demand for

goods and services after the global financial crisis, Norway’s GDP increased. They continued

to strengthen their exports and oil and gas sector for economy to recover fast. They also focused

on the mainland economy activities such as construction, services, and domestic consumption.

Due to the large amount of wealth that they have, were able to use fiscal stimulus to help bolster

the economy after the 2008 financial crisis. The rebound in Norway's GDP growth during this
period was a result of the global economic recovery, the enduring strength of its oil and gas

industry, and growth within its mainland economy.

The 2013 GDP growth was once again dropped to 1 because of the volatility of the oil

and gas sector. But it was regained in 2014 with a GDP growth of 2. In 2015 the GDP growth

suddenly decreased by 1.9 and continues to drop by 2016 with the GDP growth of 1.2, and by

2017 the GDP growth once again increased by 2.5. Norway’s heavy reliance on oil and gas

industries made their GDP growth change from time to time. The global demand for oil and

the market price of it made Norway's GDP suddenly increase or decrease. By the year of 2018

the GDP became 0.8 and in the year 2019, the GDP growth became 1.1. The year 2020 where

the global economy once again collapsed due to the covid-19. The GDP growth became -1.3

because of the pandemic. All of the economic activities were restrained and the oil and gas

sector demands became low because all of the industries were also impeded.

After the 2020 pandemic, the Norwegian GDP growth increased by 3.9 in 2021. The

post-pandemic phase of Norway's economy is rapidly recovering and the services are now

available. The oil and gas industries are now open and the demands are plenty. This phase made

the economy of Norway on top again. But still, the virus is still there, and some economic

activities are still restrained yet the economy is expeditiously recovering. But in the year 2022,

the GDP growth was once again crumpled due to the covid-19 and fluctuations in the oil sector.

With the GPD of 3, the economy of Norway is still vulnerable to global changes. The 2023

GDP growth was recorded with a 0.5 which is less than the two previous years. Norway, like

many other countries, faced high inflation, prompting its central bank, Norges Bank, to raise

interest rates. This increased borrowing costs for businesses and households, leading to reduced

investment and consumer spending.

Agriculture

In 2023, the World Bank's collection of development indicators, which is produced from

officially recognized sources, stated that the export of agricultural raw materials as a percentage

of total merchandise exports in Norway was 0.57083%. World Bank provided information on

Norway’s exports of agricultural raw materials as a percentage of its total merchandise exports.

This graph covers 25 years, and the year 1999 had the highest growth rate, coming close to

exceeding 1 percent. The data set illustrates that every year there are shifts in agricultural

exports due to the supply and changing environment. In addition, the Norwegian economy is

more dependent on the oil and gas industry, and the country's natural resources provide a

greater proportion to the country's gross domestic product (GDP) than the agricultural sector

does. The gradual decrease in agricultural exports that has occurred over many years as a result

of the shifting patterns and weather conditions in the Norwegian area. Even while the data

continues to show a downward trend, the year 2022 will be the year with the lowest exports of

agricultural raw materials, with just 0.38307%.

The year 1999 and 2000 is when the Norwegian government starts to expand their

industries and services. These years help the mainland economy of Norway where people have

jobs in the constructions and services. Also, the oil and gas industries have also contributed in

this illustration. Due to the higher demand of oil and gas in that year, the jobs have also increase

in working on the field of oil and gas industries. While blue bar shows the growth of the

industry in Norway, the yellow graph represents the decline. The reason of decline in the year

2006 up to 2011 is because of the global financial crisis that affect not only Norway but also

the other countries. The highest decline on industries was the year 2009 were -4.23222% was

recorded. On the other hand, the highest growth of industry was year 2000 were the recorded

increase was 5.02476%. Although it is a good sign that the growth is higher than the declination

of growth on industry sector, the volatility of the growth is persistent and yet they still manage

to recover rapidly because of their economic handling and immediate resolution to the

problems.
Service

In 2023, Norway's yearly percentage increase in imports of goods and services was

0.67524%, according to the World Bank's collection of development indicators, which is

derived from officially recognized sources. The growth rate of goods and services is imported

annually using constant local currency. Constant 2015 prices, stated in US dollars, serve as the

basis for the aggregates. The total value of all commodities and other market services obtained

from the rest of the globe is represented by imports. The value of goods, freight, insurance,

transportation, royalties, licensing fees, and other services including government, business,

personal, financial, information, and communication are all included. While the year 2000 to

2008 is consistent being stable growth in services sector, the sudden decline in the year 2009

is connected to the global financial crisis. The year 2010 until 2019 is the recovery phase of

the service sector where the highest percentage was the 2010 with 7.98466%. By the year 2020

the service sector was once again hit by sudden decline due to the covid-19 where the economic

activities were restrained and the movement of the people are limited.
Norway’s Natural Resources

The amount of oil and petroleum found in this country is vast. Although the petroleum

sector will continue to play a significant part in the Norwegian economy for many years to

come, the government has been urged to cut back on oil and gas production in Norway due to

the sharp decline in oil prices in 2014 and environmental concerns about the need to move

toward a society with lower carbon emissions (Political and Economic Situation, n.d.).

According to U.S. Energy Information Administration, crude Oil Production in Norway

increased to 1804 BBL/D/1K in October from 1622 BBL/D/1K in September of 2024. From

1973 to 2024, Norway's crude oil production averaged 1675.43 BBL/D/1K; it peaked in July

2000 at 3411.00 BBL/D/1K and fell to a record low of 2.00 BBL/D/1K in January 1974.

Norway’s natural gas reserves rank 17th in the world in 2015. Currently, Norway is one

of the largest producers of natural gas. They rank 58th in the world as largest producers. The

country’s output decreased by 0.49% in 2023, compared to 2022. Three percent of the global
production accounts to Norway, with the world’s other largest producers being the United

States of America, Russia, and Iran (Kgi-Admin & Kgi-Admin, 2023).

Norway’s economy is reliant on oil and gas industries, they are also easily affected by

the sudden global change. Their economy is based on natural resources, the highest percentage

of Norway’s economy is the petroleum sector. The table above also shows that Norway has one

of the highest natural gas reserves. With these, the graphs that were collected and presented tell

us that Norway’s development is based upon the production, exports, and global market of oil,

gas, and petrol. The sudden fluctuations are the effects of sudden shifts in the world economy,

just like what happened in the 2008 global financial crisis and the covid-19 pandemic. The

agriculture, industry, and service sectors have also a key role in the GDP growth of Norway.

Without these elements, the GDP will continue to decline due to the oil dependency of Norway.

Lastly, domestic consumption, infrastructure projects, and services also contributed to the

previous years of GDP growth.

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