00:00Now, when you think of Norway, things that come to mind are the sun that never sets in
00:04the summer, unbelievable nature, the fact that it's one of the happiest countries in
00:09the world, even white bears that freely roam in the wild, I'm guessing they're happy too.
00:14Already planning your trip to this dream country?
00:17Well, don't rush, you'll have to review your budget.
00:20Fuel there is 10-15% more expensive than in other Western European countries.
00:25A meal at a cafe for one person will cost at least 30 bucks.
00:29Plus, consider yourself lucky if you manage to find a hotel at $100 a night.
00:34If you Google the most expensive country in the world, you'll see this list, Switzerland,
00:39which is meanishly expensive, the United States, duh, been there, know that, Luxembourg is
00:45not a surprise either.
00:47And then, all of a sudden, you see Norway.
00:49Just so you know, a family of four would need over 4 grand a month just to exist in Norway.
00:55And it doesn't even include rent.
00:57Specialists say that Norway is around 7% more expensive than in the US.
01:02Norway is a bit weird though.
01:04Usually, the richest countries have national currencies that are stronger than the US dollar.
01:09Take Swiss francs, for example, or the Kuwaiti dinar, which is literally the boss when it
01:13comes to currencies.
01:15Like one Kuwaiti dinar can snag you 3.25 US dollars.
01:19Now, here's where the mismatch comes.
01:21The Norwegian krona is dubbed the weakest currency in the West.
01:25Well, how come?
01:27In the wild world of global currencies, the Norwegian krona used to be a tough player
01:32known for smart money moves.
01:35But surprisingly, it is now the weakest currency in the West, taking a big hit in the last
01:40decade.
01:41It has fallen hard against the US dollar and Euro, causing concern for central banks and
01:46money folks worldwide.
01:48The oil price rollercoaster is a major factor in the krona struggle, as Norway relies heavily
01:53on oil exports.
01:55But even with oil prices relatively high, it remains historically weak against major
02:00currencies.
02:02The weak Norwegian krona is affecting everyday folks too, with prices rising on almost everything
02:07due to heavy imports.
02:09Inflation is growing, leading to interest rate hikes by the largest bank.
02:14High interest rates are hurting the housing market and making life more expensive for
02:18Norwegian citizens.
02:19So one of the supposed reasons for why Norway is so expensive might be weak national currency.
02:26What else is particular about Norway?
02:28Well, climate for sure.
02:30It may be hard to imagine a freezingly cold country plunging into riches.
02:34It's an imagery we usually see on social media with geotags Dubai, Saudi Arabia, or
02:40even Kuwait.
02:41And it makes sense to think now that all the riches are somewhere southward, as these places
02:46have strong oil-based economies and super-strong currencies.
02:50But in reality, better economies in the south are a current trend.
02:55Ever wonder why cold countries seem to be raking in the cash while the hot nations are
02:59just hanging out?
03:00Turns out, those living in chilly climates had to hustle just to survive winter.
03:05Think building shelters, stockpiling food, and keeping that fire burning.
03:10Meanwhile, those basking in the sunshine had it a little easier with hunting and foraging
03:14year-round.
03:16This theory holds true even in the land down under.
03:19Sydney and Melbourne, the top dogs in Australia's wealth game, also happen to be some of the
03:24coldest cities, while Darwin, the warmest city, is lagging behind.
03:29Some might argue that this theory doesn't hold up when we look at ancient civilizations
03:33or modern hotspots like tropical Singapore.
03:37But hey, times change, and so does wealth generation.
03:40Back in the day, it was all about farming, but now it's more about industry and innovation.
03:46So Norway may seem to have been bound to get rich historically and geographically.
03:50Still, it's not exactly so.
03:53Norway used to struggle a lot.
03:55Back in the day, it faced some tough times with harsh winters and tricky geography.
03:59They even had famines that pushed families to seek a better life in the US.
04:05So how did Norway go from rags to riches?
04:08Yep, oil and gas played a big role.
04:10The country is small, but it has around 0.31% of all oil reserves in the world.
04:17But in Norway, there's more to the story than just black gold.
04:20For example, the top oil reserve is not some Arabic country but Venezuela, which claims
04:26up to 20% of the world's liquid gold.
04:29Still, Venezuela's economy is far from stable, so it's not all about oil.
04:35Although bested in forest size by other European nations, Norway was an unrivaled powerhouse
04:41in lumber during the Age of Sail.
04:44Thanks to its strategic fjord path, timber from its inland forests could quickly reach
04:48fjordside mills and global markets.
04:51As railroads unlocked larger forest potential in other countries post the 19th century,
04:56Norway was Europe's timber king, bolstered by a world-class merchant fleet by the 20th century.
05:03The Norwegian timber wealth, coupled with early cooperative societal norms, spurred
05:08growth across several sectors, from agriculture to fishing and banking.
05:13Despite being labeled poor in the 19th century, Norway's GDP per capita outshone eastern
05:19and southern European nations.
05:21The nation's ascendancy continues beyond the discovery of its oil reserves.
05:26Norway is unique, with a small population but sprawling land.
05:30Despite its vastness, the Nordics are scattered and considered one of the most spacious countries
05:35globally.
05:36Much of the North's territory stretches beyond the Arctic Circle, offering harsh landscapes
05:40with thin topsoil covering the bedrock.
05:43The tough terrain in Norway, full of mountains and with a short growing season, limits arable
05:48land to only 2.2%, similar to Yemen.
05:52The scattered arable land in small valleys makes extensive farming impractical, a far
05:57cry from the efficient farming in the US.
06:01With a huge chunk of land and coastlines, but a small population, Norway makes some
06:06serious cash from its reserves.
06:08Plus, nature has been pretty kind in Norway, with rich fishing grounds, hydropower from
06:13rivers, and power from cold waters.
06:16And only then comes the little thing called oil.
06:19The late 50s saw a big discovery that changed everything for Norway's economy.
06:24Fast forward to today, and petroleum activities have been a major game-changer for Norway,
06:29feeding its economic growth and funding its welfare state.
06:35But Norway didn't just sit back and watch the money flow in.
06:38They made smart moves, like creating a sovereign wealth fund to manage their oil wealth for
06:43the long haul.
06:44The fund sees some big bucks, currently standing at 1.7 billion Norwegian kroner, or over 160
06:51million US dollars.
06:53Norway uses the interest from this fund to boost its annual budget, ensuring top-notch
06:57healthcare, education, and welfare for its citizens.
07:01And here's the kicker – Norway's not resting on its laurels.
07:04They're investing in sustainable technologies, like offshore wind power, to secure a bright
07:09future beyond oil and gas.
07:12Norway may be expensive, but it can't compete with the world's costliest place to live
07:17– Monaco.
07:18It's almost four times more expensive than the global average.
07:22So if you're looking to rub elbows with the rich and famous, look no further than
07:26Monaco.
07:27With property prices soaring to an average of over $50,000 per square meter in 2022,
07:33it's no wonder why this tiny country is a magnet for the la-di-da.
07:38However, there's a place that's particularly expensive for tourists.
07:42And I'm not talking about tourist traps.
07:44Neither Oslo nor Monaco can beat the prices in… well, take a second to make your guess.
07:50Ready?
07:51Welcome to Ashgabat, Turkmenistan's capital.
07:54A gallon of milk costs a whopping $15, while a standard internet subscription plan will
08:00set you back $168 a month.
08:04Calm down, you're not poor, it's just an economic glitch.
08:07The reason for these prices is simple.
08:09The Turkmen national currency exchange rate in relation to dollars is fixed and never
08:14changes.
08:15$1 equals 3.5 minats, and it's been so since 2015.
08:20Local prices and the local currency grew to inflation, making it not proportionate to
08:25prices in dollars – the exchange rate never changes.
08:29So if you live there, such prices don't seem to be extraordinary.
08:33If you come with dollars, you're in for a pricey trip!
08:37That's it for today!
08:38So hey, if you pacified your curiosity, then give the video a like and share it with your
08:42friends!
08:43Or if you want more, just click on these videos and stay on the Bright Side!
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