Norway or the Kingdom of Norway is a country situated in the northwest of Europe; she is one of the Scandinavian countries like Sweden and Denmark. Norway shares the border with Denmark, Russian, Sweden, and Finland. The climate of the country is cold and freezing throughout the year.
She is a quiet and peaceful country with beautiful landscape, especially the beautiful colors of northern lights on the sky. Now, we should analyze the Norway’s economy and as a country by discussing her strengths and weakness, and how the country can take advantage of the opportunities. What threats she has to face, here’s the swot analysis of Norway;
Here are the 6 major strengths of Norway.
Stable Political Environment
Norway’s government and administrative system is comprised of parliament unitary and constitutional monarchy. Currently, Herald 5th is her monarch, and the prime minister of the country is Erna Solberg. The political system of the country is free from corruption; therefore, her people are satisfied with their political leadership.
The interesting thing to notice about her people that they aren’t preoccupied with their political parties; because the standard of living of the country is high.
Safest Country for Tourists
A high standard of living means that her people have access to the basic facilities of life. It’s because of the stable economy of the country, that provides jobs to the people. When people are busy with their work, then there’s no reason for people to fight.
Even at the national level, the country has no dispute with other nations. Therefore, Norway has one of the lowest crime rates in the world.
The estimated nominal GDP (gross domestic product) of the country is 443 billion US dollars, that’s 22nd highest in the world. Her estimated per capita is 82,711 US dollars, and that is the world’s third-highest. These figures show the strength of Norway’s economy.
The political leadership of the country is committed to create an atmosphere for the growth of businesses, especially in the tech sector. Norway is also famous for making big trade and business deals.
Beautiful Glacier Mountains, green landscape, and clear and transparent water steams attract the attention of nature-loving tourists and bring them to Norway. The vast landscape of the country gives you majestic experience with nature. The natural beauty gives your photos an extraordinary effect.
Norway’s government is also very protective of the nature and its beauty. The country has decided to end carbon emission to the atmosphere by the end of 2050. Even though her economy is heavily reliant upon fossil fuels, but this decision shows the country’s social commitment and dedication to nature and our global ecosystem.
According to an estimate, the country is planning to reduce carbon emission by approximately 40% in the next 10 years, and the rest would go down gradually. These decisions would bring a lot of new eco-friendly tech industries and businesses into the country. Ultimately, it would result in more economic growth and higher GDP and per capita.
Alliances with World Organization
Norway doesn’t only have close relations with the US, and European Union, but she is also the co-founder and member of the world-leading organizations like the NATO, the UN, the European Free trade Association, the European Economic Area, the Council of Europe, the Antarctic treaty, the Schengen Area, the OECD, the WTO, and the Nordic Council.
Find out the weaknesses of Norway
Norway’s economy is heavily reliant upon fossil fuels, petroleum, hydroelectric energy, and aluminum. It’s good for her economy because almost all the countries of the world are still using the same sources of energy. However, the trend of the global economy is shifting towards eco-friendly and safer renewable sources of energy. Although, she has planned to transform into renewable energy sources, but her transformation process is slow if you compare it with her neighboring countries.
Less Economic Diversity
As we know that oil and gas are the major contributors to the country’s economy. The way the world’s economy is transforming and shifting, and the fossil fuel market would crash soon. If it does, then the whole economy would get down. That would result in a higher unemployment rate when people have less money to buy things. Circumstances would make them to steal and rob stores, crime rate would increase. The peaceful balance of the Norwegian society would be disrupted by the crash of the oil and gas market.
Expensive and Costly County
She’s the most costly country in Europe. There’s a famous saying in Norway that whatever you want is expensive, and whatever you are cheap. Even the basic food, drinks, and other edible items are so costly and expensive that the Norwegian people go to the neighboring countries for shopping.
Find out the opportunities in this swot analysis of Norway
Develop New Industries
Since her economy is dependent upon petroleum products that she should focus on other sectors as a precaution and backup. Norwegian high standard of living is a positive point for the country that her people would be interest to try something new and different. She also has resources to try new industries, not many countries have such option.
Growth in the Tech Field
When we talk about the tech industry, then American Silicon Valley and New York comes to our mind. Norway has a great potential to become the next hub of the tech industry, it’s because of her stable economy, peaceful country’s social environment, free healthcare, and other facilities. Americans wish to have such facilities what Norway is offering to her citizens. All she has to do is to attract and bring tech entrepreneurs into the country and invest in new fields. Things would unfold themselves with time.
It doesn’t mean Norway is new to the tech field; she has successfully been working in the cybersecurity niche and internet of things. What she lacks is the rush of new entrepreneurs and talent to grab the opportunities and invest in it.
Below are the key threats to Norway
Extremism & Terrorism
Norway is undoubtedly a peace-loving country but some minor nationalist extreme element exists in the country against the minorities. A young man inspired from it opened up firing against innocent civilians at the mosque in 2011. This country’s president acknowledged the incident as an example of extremism. Although it was only one incident, but incidents like these can jeopardize the economy of the country.
Private Data Collection by China & Russia
China and Russia pose a great threat the Norway in terms of individual data privacy. Since both of these are a race of collecting data of all the countries. Perhaps if you’re wondering that what harm an individual data would do. Then you should know that we live in the era of information of technology, collection of individual’s private data would tell you the lifestyle, attitude, and behavior of people of a certain country. When you have such sensitive psychological information, then you can control the minds of people by making them do whatever you want them to do. Chinese app ‘Tik Tok’ is a famous example that has over a billion users, and millions of people upload their videos daily.
After thoroughly analyzing the swot analysis of Norway; we have come to know that Norway’s economy is very strong. All she has to do is to diversify her resources into various fields that she doesn’t have to completely rely only in the field. If one market crashes, there should be other industries to back up the country economy.
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