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- Economy—overview: The
Norwegian economy is a prosperous bastion of welfare capitalism,
featuring a combination of free market activity and government
intervention. The government controls key areas, such as the vital
petroleum sector (through large-scale state enterprises). The country is
richly endowed with natural resources - petroleum, hydropower, fish,
forests, and minerals - and is highly dependent on its oil production
and international oil prices; in 1999, oil and gas accounted for 35% of
exports. Only Saudi Arabia and Russia export more oil than Norway. Oslo
opted to stay out of the EU during a referendum in November 1994. Growth
picked up in 2000 to 2.7%, compared with the meager 0.8% of 1999, but
fell back to 1.3% in 2001. High oil prices helped the economy in 2002 in
face of the sluggish world economy. The government has moved ahead with
privatization. With arguably the highest quality of life worldwide,
Norwegians still worry about that time in the next two decades when the
oil and gas begin to run out. Accordingly, Norway has been saving its
oil-boosted budget surpluses in a Government Petroleum Fund, which is
invested abroad and now is valued at more than $43 billion.The
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