The GDP per capita and inflation rates
- For the past years, a significant part of revenues was being generated oil. Oil exports have been contributing a substantial part of GDP growth for Norway. The oil revenue has witnessed a decline in the past years that have to cause a problem for the economic indicators. The oil and gas sector is largest for Norway’s Value added, government revenues, investments and the export value. The other industries that contribute to Norway’s economy include agriculture 2.3%, Industry 33.7% and services provide to 64% of Norwegian GDP (Anon., 2019).
The GDP per capita and inflation rates are affecting the oil revenues, and it is going down. The sector is a significant source of revenue for the country has a vital part in the employment sector of the country. The tax revenues from oil are expected to be around 132 billion in the year 2020. In comparison to the last four years, it is a significant increase due to the high oil and gas prices. The revenue from the oil is estimated to be 19% of the total revenue generated by the government (Norwegian petroleum). This rise is expected a have a very positive impact on the economy of the country. The inflation and unemployment rate will be lower than in previous years, whereas the GDP will be increased due to more revenue generated by the significant sector of the country. The share being so major there has a direct impact on the taxes, investments and revenues that are generated by the government.
5.Recommendation
- Yes, I will recommend Norway as an investment destination. The macroeconomic indicators indicate that the policies are going in the right direction. After the year 2016, the government has taken all the steps to make sure that the country becomes an excellent investment destination.
- The country is politically, very stable. After the financial crisis, the democratic process of the country held the country steady, and now all the economic indicators show that the country has low inflation and low taxes for people who are willing to invest in the country.
- The only limitation for the country is that it is too much dependant on oil. Oil is a blessing for the country but can also be considered as a curse. The country needs good alternatives to reduce its dependency on oil and gas.