section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Norwegians enjoy the second-highest GDP per capita among European countries (after Luxembourg), and the sixth-highest GDP (PPP) per capita in the world. Norway ranks as the second-wealthiest country in monetary value, with the largest capital reserve per capita of any nation. According to the CIA World Factbook, Norway is a net external creditor of debt. Norway reclaimed first place in the world in the UNDP Human Development Index (HDI) in 2009. The standard of living in Norway is among the highest in the world. Foreign Policy magazine ranks Norway last in its Failed States Index for 2009 and 2023, judging Norway to be the world's most well-functioning and stable country. The OECD ranks Norway fourth in the 2013 equalised Better Life Index and third in intergenerational earnings elasticity according to a 2010 study.
  
  The Norwegian economy is an example of a mixed economy; a prosperous capitalist welfare state, it features a combination of free market activity and large state ownership in certain key sectors, influenced by both liberal governments from the late 19th century and later by social democratic governments in the postwar era. Public healthcare in Norway is free (after an annual charge of around 2000 kroner for those over 16), and parents have 46 weeks paid parental leave. The state income derived from natural resources includes a significant contribution from petroleum production. As of February 2025, Norway has an unemployment rate of 3.9%, with 69.7% of the population aged 15–74 employed. People in the labour force are either employed or looking for work. As of 2023, 10.6% of the population aged 18–67 receive a disability benefit and 30% of the labour force are employed by the government, the highest in the OECD. The hourly productivity levels, as well as average hourly wages in Norway, are among the highest in the world.
  
  The egalitarian values of Norwegian society have kept the wage difference between the lowest paid worker and the CEO of most companies as much less than in comparable western economies. This is also evident in Norway's low Gini coefficient.
  
  The state has large ownership positions in key industrial sectors, such as the strategic petroleum sector (Equinor), hydroelectric energy production (Statkraft), aluminium production (Norsk Hydro), the largest Norwegian bank (DNB), and telecommunication provider (Telenor). Through these big companies, the government controls approximately 30% of the stock values at the Oslo Stock Exchange. When non-listed companies are included, the state has even higher share in ownership (mainly from direct oil licence ownership). Norway is a major shipping nation and has the world's sixth largest merchant fleet, with 1,412 Norwegian-owned merchant vessels.
  
  By referendums in 1972 and 1994, Norwegians rejected proposals to join the European Union (EU). However, Norway, together with Iceland and Liechtenstein, participates in the European Union's single market through the European Economic Area (EEA) agreement. The EEA Treaty between the European Union countries and the EFTA countries—transposed into Norwegian law via "EØS-loven" —describes the procedures for implementing European Union rules in Norway and the other EFTA countries. Norway is a highly integrated member of most sectors of the EU internal market. Some sectors, such as agriculture, oil and fish, are not wholly covered by the EEA Treaty. Norway has also acceded to the Schengen Agreement and several other intergovernmental agreements among the EU member states.
  
  The country is richly endowed with natural resources including petroleum, hydropower, fish, forests, and minerals. Large reserves of petroleum and natural gas were discovered in the 1960s, which led to an economic boom. Norway has obtained one of the highest standards of living in the world in part by having a large amount of natural resources compared to the size of the population. In 2011, 28% of state revenues were generated from the petroleum industry.
  
  Norway was the first country to ban deforestation, with a view to preventing its rain forests from vanishing. The country declared its intention at the UN Climate Summit in 2014 alongside Great Britain and Germany.