The Norwegian krone is the official currency for Norway. The krone has been growing stronger for some time, reaching record highs in 2002 against the euro and US dollar. In the beginning of 2002, 1 US dollar was worth approximately 9 Norwegian kroner. On July 1 USD was worth 7.3 kroner. Interest rates, as well as ever increasing crude oil prices have had an impact on the appreciation of the Norwegian krone. Norway is the 3rd largest exporter of oil, and consequently increases in demand for oil have moved more money into Norway's economy.
| Moody's Rating |
| Aaa |
| S&P Rating |
| AAA |
|
Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
What does it look like?
Political Structure
Norway's government is a constitutional monarchy. It has 19 provinces, and the King heads its executive branch. The cabinet is made up of the state council and is appointed by the monarch with the approval of the Parliament. There are no elections for the executive branch in Norway because the monarch is hereditary. The prime minister is usually the leader of the majority party. The legislative branch has a modified unicameral Parliament; it has 165 seats where members are elected by popular vote by proportional representation for 4-year terms. The last elections were held in September 2001, and will next be held in September 2005. The judicial branch is called the Hoyesterett and the monarch appoints its justices.
Prominent Figures
The Norwegian King, since 1991, is Harald V. The current prime minister is Jens Stoltenberg. The governor, Svein Gjedrem, runs the Central Bank of Norway.
Unique Characteristics
Norway is different from its western European neighbors in that it has a large offshore sector. However, like a large percentage of Europe, Norway has become more of a service-oriented economy. Other sectors such as agriculture, forestry, fishing, and manufacturing have declined in their contributions towards the GDP. In 2002, agriculture, forestry, and fishing accounted for 2.1% of the GDP, although those sectors still employ a good amount of the labor force in Norway. The manufacturing sector accounted for 18.8% of the GDP, while other non-governmental services accounted for 40.5% of the GDP.
Key Economic Factors
As a result of its small population, Norway's economy is, as compared with the rest of the world, relatively small. In 2002 its nominal GDP was approx. $191 Billion, it was ranked as 12th out of 19 of the western European countries. However, in terms of per head, proportionally, Norway is one of the wealthiest countries in Europe. In 2002, Norway's share of private consumption accounted for 45.1% of the GDP, which is relatively small compared to the European average of 56%. On the other hand, public consumption (21.9%) was higher than the European average, yet low for Nordic standards (compared with Denmark and Sweden). Gross fixed investment was also above the European average, coming in at 17% of the GDP in 2002, which boosted the offshore sector. However, as oil prices increase, offshore investment have declines. Norway's exports and imports account for 41.5% and 27.3% of the GDP, which is less than most of Europe.
Have additions or corrections to this material? 
