Why are Norwegians so rich

BusinessPortal Norway

Oslo, September 30, 2019. Norway has a net wealth that is roughly three times as large as its gross domestic product. At the end of the second quarter of 2019, Norway (state and local authorities) had 12,444 billion NOK (approx. 1,245 billion euros) at their disposal. Liabilities amounted to NOK 1,544 billion, bringing the total to EUR 10,900 billion. Norway was as rich as never before. Compared to the previous year, the country's wealth rose by NOK 751 billion or 7.4 percent.

NOK 406 billion of the capital growth comes from surpluses generated in the income statement of the public administration, the so-called net financial investments. The remainder of the increase is due to exchange rate and foreign exchange gains, as well as other revaluations, such as the government pension fund's investments in foreign financial markets.

Norway's wealth first exceeded GDP in 2004. In 2013 it reached double GDP and is now triple.

In line with the growth of the GPFG, changes in the exchange rate on the securities and foreign exchange markets have gradually become of great importance for increasing wealth, according to the overview of the statistics authority.

While petroleum activities and the international stock market have made the state wealthy over time, local government has multiplied its indebtedness. At the end of 2018, the municipal government's total debt was NOK 632 billion. According to the statistics agency, the debt growth is mainly due to increased and loan-financed capital expenditure.

The overall public budget in Germany (federal, state, municipalities / community associations and social security including all extra budgets) had financial assets of at the end of 2018 compared to the non-public sector (credit institutions and other domestic and foreign sectors, e.g. private companies in Germany and abroad) 963.8 billion euros. As the Federal Statistical Office (Destatis) also reports, the financial assets have increased by 3.1 percent or 28.6 billion euros compared to the revised results at the end of 2017.