Regions and Cities at a Glance 2018 – NORWAY http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

GDP per capita in USD PPP Top 20 % richest over bottom 20% poorest regions 2016 2000 Ratio 80 000 4 Small regions Large regions Highest region (TL3) (TL2) 70 000 Oslo Region 60 000 69 091 USD 3 50 000 Norway 54 359 USD 40 000 Lowest region 2 30 000 Hedmark and Oppland 20 000 39 395 USD 1 10 000 2000 2005 2010 2016

Country (number of regions considered) The gap in GDP per capita between the richest (Oslo) and the poorest (Hedmark and Oppland) Norwegian regions has been stable over the last sixteen years. Norway remains below the OECD median country in terms of regional economic disparities. With a productivity growth of 1.5% per year over the period 2000-16, Oslo region had the highest productivity growth and is now the most productive region in Norway. The region of Agder and Rogaland, which averaged productivity growth of 1% per year in 2000-16, recorded rapid growth in the early 2000s, before experiencing a slump in productivity from which it only recovered in recent years. Youth unemployment rates are well below the OECD average in all Norwegian regions. With 12.1% of youths unemployed, Oslo and Akershus has the highest youth unemployment in Norway, which was still clearly below the OECD average (15.1%) in 2017.

Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2007-17

GDP per worker in USD PPP rate (%) 115 000 Oslo Region: highest 25 110 000 OECD Osloproductivity Region: in highest 2016 and 105 000 20 Highest rate productivityhighest productivity growth 100 000 Oslo region (+1.5%growth (+1.5%annually) average 15 12.2% 95 000 annual growth over Norway 90 000 2000-16) 10 10.4% 85 000 Agder and Rogaland: 80 000 5 Lowest rate lowest productivity Trøndelag 75 000 growth (+1% annually) 70 000 0 7.4% 2007 2012 2017 2000 2005 2010 2016 Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Norway is composed of seven large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010).

Updated the 5th of March 2019 Differences in well-being across regions

Top region Bottom region Oslo Region Regions (Landsdeler)

Western Trøndelag Trøndelag Oslo Region Hedmark and Trøndelag Norway Oppland

Oslo Region Oslo Region top top 20% Hedmark and Northern Oppland Oslo Region Norway

(1 to 402) to (1 Trøndelag Hedmark and Oslo Region Hedmark and Oppland South-Eastern Oppland Norway Hedmark and Hedmark and Oppland Oppland Northern middle middle 60% Norway Oslo Region Northern Northern Norway

Norway

Ranking Ranking OECD of regions bottom bottom 20%

Community Safety Jobs Housing Health Life Education Civic Access to Income Environment Satisfaction Engagement services Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below. Norway is the OECD country with the highest score in environment, with all seven regions ranking in the top 20% of OECD regions. Regions in Norway perform relatively well in all well-being dimensions, but large disparities are observed in community (perceived social network support) and safety (homicide rates). Western Norway is among the safest regions in the OECD, and Hedmark and Oppland, the least safe region in the country, still fares better than the OECD median region. Both the 20% top performing and 20% lowest performing Norwegian regions fare better than the OECD median region in all well-being dimensions except for community and educational attainments.

Country OECD median Norw egian regions Average region Top 20% Bottom 20% Community Perceived social netw ork support (%), 2013 93.8 91.4 95.6 91.4 Safety Homicide Rate (per 100 000 people), 2016 0.5 1.3 0.2 0.7 Jobs Employment rate 15 to 64 years old (%), 2017 73.7 67.7 75.5 71.0 Unemployment rate 15 to 64 years old (%), 2017 4.3 5.5 3.0 5.2 Housing Rooms per person, 2016 2.0 1.8 2.1 1.8 Health Life Expectancy at birth (years), 2016 82.5 80.4 83.0 81.9 Age adjusted mortality rate (per 1 000 people), 2016 7.3 8.1 7.0 7.7 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 7.5 6.8 7.6 7.5 Education Labour force w ith at least upper secondary education (%), 2017 82.4 81.7 84.7 79.1 Civic engagement Voters in last national election (%), 2017 or lastest year 78.2 70.9 80.7 74.7 Access to services Households w ith broadband access (%), 2017 94.0 78.0 96.0 90.3 Income Disposable income per capita (in USD PPP), 2016 24 549 17 695 27 125 23 018 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 4.5 12.4 4.3 6.3 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Norway is composed of seven large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019 Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 NorwayUnited States OECD average people in cities with population above 500 000 people 26% outside cities 30% people in cities people 5.2 million 1.2 billion 55% with population outside cities 50% people - 50% people in cities with people - 70% above 500 000 live in cities population between live in cities 250 000 and 500 000 people in cities with 6% 20% population between 50 000 and 250 000 9% 4% people in cities with people in cities with population population between between 250 000 and 500 000 50 000 and 250 000 Source: OECD Metropolitan Database. Number of cities: 6 in Norway and 1 138 in the OECD. In Norway, half of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 26% compared to 55% in the OECD area.

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2000-16

Norway OECD average % % Norway OECD average 80 80 68% 70 63% 70 58% 55% 60 60 50 50 46% 40 33% 40 29% 26%

30 30 areas 20 20

10 Oslo

10 327metropolitan 0 0 % of national % of national % of national All metropolitan1 areas Largest contributor2 GDP employment population

Oslo metropolitan area accounts for 33% of national GDP. Between 2000 and 2016 it generated 46% of the national GDP growth. Oslo is among the top 5% OECD metropolitan areas in terms of GDP per capita. In terms of PM 2.5 levels, Oslo is among the third of OECD metropolitan areas with the lowest level of air pollution across the OECD. OECD Metropolitan areas ranking Cities above 500 000 people

USD PPP 100 000 80 000 GDP per 60 000 40 000 capita, 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: 1 in Norway compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

Updated the 5th of March 2019 Subnational government finance

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

Norway 00 OECD average

Social protection 29% 11 14% Social protection Education 24% 22 25% Education Other 15% 33 15% Other

Health 14% 44 18% Health

Economic affairs 10% 55 14% Economic affairs

General public services 8% 66 14% General public services

Subnational expenditure per capita: USD 9 915 77 USD 6 817

Subnational government expenditure amounts to USD 9 915 per capita in Norway compared to an OECD average of USD 6 817. In Norway, this is equivalent to 33.2% of total public expenditure and to 16.9% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Social protection and education are the two largest spending items for subnational governments in Norway: together they represent 53% of subnational expenditure compared to 39% in the OECD area. In Norway, 41.6% of total public investment was carried out by subnational governments compared to an OECD average of 56.9%.

Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita Norway OECD average 3 500

3 000

2 500 Total public investment USD 3 076 per capita 2 000 5.2% of GDP Total public investment USD 1 278 per capita 1 500 3.0% of GDP Subnational government 1 000 investment Subnational government USD 1 280 per capita investment 500 41.6% of public invest. USD 727 per capita 0 56.9% of public invest.

Source: OECD Subnational Government Structure and Finance Database. Note: The function ‘Other’ includes housing and community amenities, recreation, culture and religion; environment; public order and safety.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019