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The financial crisis

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Kjetil

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Norway was the only Western industrialized state to escape the global economic meltdown relatively unscathed. It boasts a healthy banking sector, record-low unemployment, and one of the hottest sovereign wealth funds around. During the height of financial meltdown in 2008, Norway actually grew by 2.2 percent.

http://www.newsweek.com/2010/04/21/the-rescue-that-really-worked.html

Norway has a large public sector (which may explain why the unemployment rate is so low) but not uniquely so. Can the main reason be Government bailouts made possible by the oil revenues?

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I'd say it's a rather particular combination of extraordinary natural wealth (oil, fish) not being part of the EU, and a small self managed population which is highly educated, homogeneous, and heir of decades of american investment as the northern forefront of the iron curtain (kola peninsula).

That said, norway has never been immune (http://www.ft.com/cms/s/0/b28690a8-9a2e-11dc-ad70-0000779fd2ac.html#axzz1SDgwoFDp)

If government bail outs saved them this time, it's going to be that same attitude that stagnates them when there's worldwide growth.

Edited by volco
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