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Only 18% of the GDP of Norway is from oil and gas, though. Even without any savings, Norway would probably end up similar to other Nordic states.
by xyproto 7y ago
Only 18% of the GDP of Norway is from oil and gas, though. Even without any savings, Norway would probably end up similar to other Nordic states.
- ac29 7y agoTheir oil-funded sovereign wealth fund has a value of 1T USD [0]. If they manage to achieve modest 4.4% returns, those returns would represent 10% of GDP. Last year, it returned 187B USD [1], or the equivalent of 42% of GDP (though I don't believe the fund's returns are considered part of GDP). [0] https://www.nbim.no/en/ https://www.nbim.no/en/ [1] https://www.nbim.no/contentassets/3d447c795db84a18b54df8dd87d3b60e/spu_annual_report_2019_en_web.pdf https://www.nbim.no/contentassets/3d447c795db84a18b54df8dd87...
- xyproto 7y agoYes, but the other Nordic states does not have similar savings, but are still doing well. I agree that it's a huge advantage, but I'm not convinced that the oil has been key for Norway. I think using only the oil as the explanation is a bit too simple. There is a well functioning social democracy in place, with a high level of trust both in the government and in the other inhabitants.