Norway’s ranking in GDP comparison falls

Recently published figures from Eurostat show that in 2016 Luxembourg, Ireland, Switzerland and Norway were the four countries in Europe with the highest price level-adjusted Gross Domestic Product (GDP) per capita. Norway’s price level-adjusted GDP per capita in the period 2000-2014 was between 70 and 87 per cent higher than the average level of the 28 EU countries (EU28=100). In 2016, the result for Norway was considerably lower, at 48 per cent above EU28. Switzerland and Ireland have now exceeded Norway’s GDP level, with 61 and 83 per cent above EU28 respectively. The fall in the GDP ranking is primarily due to a considerable price decrease over the last two years for oil, Norway’s main export good.

Top European ranking for Norway’s consumption level

The figures from Eurostat also show the consumption level of goods and services for private households (Actual Individual Consumption) in 2016. These figures could, for many purposes, give a better impression of the relative welfare of countries, since the volume of consumed goods and services in private households also reflects the level of income. Norway has top ranking in this comparison, ahead of Luxembourg, Switzerland and Germany. The consumption level of goods and services for private households in Norway is about 15-20 per cent above the other Nordic countries.

Switzerland most expensive country in Europe in 2016

Switzerland was Europe’s most expensive country in 2016, with a price level that was 68 per cent above the average price level of the 28 EU countries (EU28=100). Iceland and Norway also stand out with high price levels; 54 and 49 per cent above EU28 respectively.

Among the EU’s largest countries, France, Germany and Italy have price levels close to the European average, with six, three and one per cent above EU28 respectively. The United Kingdom stands out amongst these countries with a much higher price level at 22 per cent above EU28.

The countries with the lowest prices are situated in southeast Europe. In Macedonia, Albania, Bulgaria, Serbia, Bosnia-Herzegovina, Romania and Montenegro, the price level of goods and services for private households is below one third of Norway’s level.

Changes in relative price levels over time could be the result of different inflation rates in the countries, but in many cases the reason could rather be changes in a country’s currency against the euro.