Economy

From the end of World War II until the late 1980's, Norway enjoyed steady economic growth. Shipping, fishing, forestry, agriculture, and manufacturing grew substantially during this period. Since the 1970's, when large-scale production of oil and natural gas began, the growth of the economy has gradually become tied to the production and export of these fuels. Declines in the oil and gas industries in the late 1980's resulted in a slight decline in the nation's gross domestic product. However, Norway maintains one of the highest per-capita incomes in the world.

Industrial growth before the 1970's was made possible mainly by large governmental expenditures on industrial-development programs and on an abundance of hydroelectric power. Among European countries, Norway ranks second only to Russia in the production of hydroelectric power.

Almost all of Norway's industrial facilities are privately owned and operated. Most transportation systems and public utilities are owned and operated by the government.

Tourism is a large and growing industry. Many Norwegians are employed in the service industries and by government.

forms an important part of the economy. A relatively wide range of consumer goods, such as processed foods (particularly fish), textiles and clothing, and household items, are produced for domestic use and export. Numerous industries produce largely for export. Among their products are pulp and paper; metals, especially aluminum, steel, and ferroalloys; fertilizers and other chemicals; machinery; and ships. Huge offshore oil-drilling platforms for use in the North Sea are made for petroleum companies.

Increasingly, Norway has turned to the production of technologically advanced products. Manufacturing is concentrated in and around Oslo, Bergen, and Stavanger. Some of the large chemical and metallurgical operations that require enormous amounts of electricity, such as a nitrogen fixation and aluminum refining, are located elsewhere, near the sites of hydroelectric power.

Less than 3 per cent of Norway's land is suitable for cultivation. The most productive areas are the valleys north of Oslo and the lowlands around Trond-heim. Farms are generally small, family owned, and affiliated with cooperatives. Crop yields are moderately high due to increasing use of fertilizer and machinery. Livestock—chiefly sheep and beef and dairy cattle—and fodder, especially hay, account for much of the nation's agricultural production. Food crops consist mainly of barley, oats, potatoes, and hardy fruits and vegetables. Much food is imported.

Norwegian farmers traditionally supplement their incomes with secondary occupations, mainly in fishing, forestry, and farming.

Norway has long been one of the world's leading fishing and fish-exporting nations. Coastal fishing in small boats accounts for much of the catch. Since World War II, fishing distant waters in large vessels has increased substantially. Whaling, once important, ceased in the late 1980's because of international opposition to whaling and the dwindling number of whales.

Forestry is one of Norway's oldest industries, dating back many centuries. Pine, spruce, and birch are the most valuable woods. Logging operations are modern and highly mechanized. Rivers and coastal waters are still used for moving logs to the mills. Cutting of forests is strictly supervised by the government.

Until the 1970's Norway's mineral production consisted chiefly of iron ore, pyrite, and coal (on Svalbard). Of these, iron ore, mined in the far north, led in value and volume. Petroleum and natural gas are now the leaders. Both are produced in the North Sea and are largely exported by pipelines beneath the North Sea. Development is controlled by the government.

Trade. Norway's prosperity depends heavily on foreign trade. Since the development of North Sea oil and gas, exports have usually exceeded imports in value. Revenues from shipping and tourism also contribute to Norway's favorable balance of payments. The Norwegian merchant marine is one of the world's largest and most modern. The fleet, operating largely between foreign ports, has long been one of the nation's leading earners of foreign exchange. Principal trading partners are Germany, Sweden, and Great Britain.

Road and railway systems in Norway are relatively well developed, considering the difficult terrain. Most of the roads and railways are in the south. Only one railway and one major highway extend northward beyond Trondheim. Roughly 60 per cent of the railway mileage is electrified. The nation is served by several international airlines, including Scandinavian Airlines System (SAS), jointly operated by Norway, Sweden, and Denmark. Major airports are at Oslo, Bergen, and Stavanger. Extensive coastal shipping supplements Norway's land transportation. The principal ports, which handle international as well as domestic traffic, are Oslo, Kristiansand, Stavanger, Bergen, Trondheim, Narvik, and Tromsö.