The Norwegian economy faces three major challenges: globalisation, expansion within the EU and a growing need to conceive and promote new concepts and methods to generate new value as oil and gas production decreases. Whilst Norway’s economy is the smallest of the Scandinavian countries, its per capita GDP stands at US$46,300 in 2006, one of the highest in the world. It is characterised as a mixed economy - a capitalist market economy with a clear component of state influence.

Norwegians enjoy a high standard of living and unemployment has stayed lower than in most European countries, standing at approximately 3.5 per cent in 2006.

Oil and gas are the cornerstones of the economy and account for roughly half of all export earnings. Other principal exports include metals (Norway is a major producer of aluminum), machinery, fish and fish products, chemicals and ships. Imports comprise machinery and equipment, chemicals and other industrial inputs, manufactured consumer goods and food. Norway is one of the world’s top 10 fishing nations. Agriculture is diversified with an emphasis on livestock, though more than half of the country’s food needs are imported.