Norway had the third-highest value creation per inhabitant in Europe in 2022 due to record high gas prices, energy exports, and a weak krone.
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| Oslo, Norway |
Even if not everyone feels it as vividly in their daily lives, the Norwegian economy is thriving right now. The GDP of Norway increased by as much as 32% between 2021 and 2022. Compared to Norway’s neighbours, these nations seldom ever do this.
Compared to the average of the 27 EU nations, Norway’s GDP after adjusting for price levels was nearly twice as big, according to the European buying power survey’s summary position.
The oil and gas business seems to be once again receiving most of the positive statistics, according to NTB’s reporting on the subject. Also relevant is the contentious issue of power export. According to Statistics Norway (SSB), the trade surplus in 2022, with natural gas exports playing a starring role, is largely responsible for this significant rise. In addition to a strong export of power, favourable aluminium and fish prices had a role. Another factor is the depreciating Norwegian krone.
Norway, however, is not alone in seeing rapid economic growth that defies explanation by energy exports:
Ireland comes in at number two, with Luxembourg at the top of the list, just ahead of Norway.
The large share of non-citizen commuters who contribute to value creation has an effect on Luxembourg’s GDP, according to Statistics Norway.
It would be unfair to compare the little nation’s economy to those of larger, more conventional nations because of how unusual it is in such settings.
The high GDP of Ireland is due in great part to the country’s business-friendly tax policies, which allow firms to rake in huge profits while having minimal impact on the general welfare of the population.
So, the Irish people benefit, to a lesser degree, from the positive statistics.
A lot of people think that the second is true in Norway as well. I mean, just where does all the money that comes in from selling energy products like oil, gas, and power go?
The majority of Norwegians pay little attention to how these funds “disappear” into the state’s oil fund or overseas investments.
In fourth and fifth position, respectively, on the ranking, are two countries that are much lower than Norway. With this move, Iceland is now in seventh position.
Sweden is struggling. The nation is now ranked eighth for the year 2022.