Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Norway's Covid-19-led economic downturn remained limited compared to most European countries, with GDP growing an estimated 3.6% in 2022 (from 3.9% one year earlier – IMF). Though still strong, private consumption (which accounts for 45% of GDP) decelerated in 2022 due to inflation pressures and declining consumer confidence. In the same year, Norway benefited from higher oil and gas prices (the country’s main exports) and increased exports to Europe following the EU sanctions against Russia (Norway’s exports almost doubled in the first eleven months of 2022). High inflation and policy tightening will weigh on domestic demand in 2023, as the worsening economic situation of the main trading partners will also contribute to a deceleration in the growth rate, forecasted at 2.6% this year and 2.2% in 2024 by the IMF (0.7% and 1.3%, respectively, according to OECD).

Norway’s public finances are sound. Norway's government gross debt did not expand substantially in the aftermath of the Covid-19 crisis unlike in the rest of Europe, despite public monetary support and a comprehensive loan programme to the banks. In 2022, the debt-to-GDP ratio was estimated at 40.3%, down from 43.4% one year earlier (IMF). The ratio is expected to follow a downward trend over the forecast horizon, at around 39%. The government budget deficit also decreased: it was estimated at 8.6% of GDP in 2022 compared to 10.1% one year earlier, thanks to direct transfers from the oil industry and withdrawals from the sovereign wealth fund. The household electricity support scheme will be extended into 2023 at a cost of around 1.2% of mainland GDP. Overall, the IMF forecasts a deficit of 8.1% this year and 8.2% in 2024. Moreover, the 2023 budget envisages a 9.4% reduction in the spending from the Government Pension Fund Global, to NOK 316,8 billion (official government figures). Such contractionary fiscal policy should help reduce inflation, which reached its highest levels in decades in 2022 (4.7%). In the same direction, the Norges Bank increased the policy rate further in November by 0.25 percentage points to 2.5%. Inflation is expected to decelerate gradually to 3.8% in 2023 and 2.7% the following year.

Norway is a rich country, with one of the highest GDP per capita in the world (estimated at USD 78,128 PPP in 2022 by the IMF). The nation also scores at the top of the United Nations’ Human Development Index ranking. Unemployment stood at 3.9% in 2022 and the labour market remained tight. The government expects employers to continue to experience problems in recruiting within several professions in the short term, with unemployment projected at 3.8% in 2023 (IMF).

Foreign Trade

Norway has a very open economy, with trade representing 71% of GDP (World Bank, latest data available). Traditionally, the country exports energy-intensive products and imports high-technology items. Norway is among the top 20 exporters of oil and the second-largest natural gas and seafood exporter in the world. Petroleum oils and gases represent more than 60% of total exports. Seafood is also among the most exported products (4.9%). Imports are led by motor cars (8.5%), petroleum, and nickel (data Comtrade).

The country's main trade partners are generally member states of the European Union. In 2021, however, the United Kingdom was the top destination of Norwegian exports (20.5%), followed by Germany (19.1%), the Netherlands (9.9%), Sweden (7.8%) and France (7.2%). China was the main supplier of goods and services in Norway (13.2%), followed by Sweden (11.3%), Germany (11.1%), the United States (6.3%) and the UK (4.6% - data Comtrade).

Norway’s trade surplus is considerable. However, it is closely linked to global oil and gas prices. In 2021, total exports almost doubled, reaching USD 160.1 billion, with imports increasing at a slower pace (USD 97.7 billion, +21.5%). Services exports stood at USD 40.3 billion, against USD 41.3 billion of imports (+13.8% and +12.2%, respectively – WTO). After it had turned negative for the first time in the last thirty years (due to low energy prices), the overall trade balance was positive by 12.3% of GDP in 2021 (World Bank). According to preliminary data from Statistics Norway, in the first eleven months of 2022 goods exports totalled NOK 2.3 million (+96.4% y-o-y – thanks to higher energy prices and lower supplies to Europe from Russia), whereas imports stood at NOK 934 million (+20.9% y-o-y). Furthermore, The Norwegian Seafood Council reported that Norway exported 2.9 million tonnes of seafood, equivalent to a value of around EUR 14 billion in 2022, an all-time high.

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

The information on the economicand fiscal measures put in place by the Norwegian government to address the impact of the COVID-19 pandemic is available on the KPMG's website.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) undertaken by the Norwegian government, please consult the section dedicated to Norway in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.