00:00Now, when you think of Norway, things that come to mind are the sun that never sets in the summer.
00:05Unbelievable nature.
00:07The fact that it's one of the happiest countries in the world.
00:09Even white bears that freely roam in the wild.
00:12I'm guessing they're happy too.
00:14Already planning your trip to this dream country?
00:17Well, don't rush.
00:18You'll have to review your budget.
00:20Fuel there is 10 to 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.
00:39Switzerland, which is memishly expensive.
00:41The United States, duh, been there, know that.
00:44Luxembourg is not a surprise either.
00:46And 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.
00:56Specialists say that Norway is around 7% more expensive than in the U.S.
01:02Norway is a bit weird, though.
01:04Usually, the richest countries have national currencies that are stronger than the U.S. dollar.
01:08Take Swiss francs, for example.
01:10Or the Kuwaiti dinar, which is literally the boss when it comes to currencies.
01:14Like, one Kuwaiti dinar can snag you 3.25 U.S. dollars.
01:18Now, 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 known for smart money moves.
01:34But surprisingly, it is now the weakest currency in the West, taking a big hit in the last decade.
01:40It has fallen hard against the U.S. dollar and euro, causing concern for central banks and money folks worldwide.
01:48The oil price rollercoaster is a major factor in the krona struggle, as Norway relies heavily on oil exports.
01:55But even with oil prices relatively high, it remains historically weak against major currencies.
02:00The weak Norwegian krona is affecting everyday folks, too, with prices rising on almost everything due to heavy imports.
02:09Inflation is growing, leading to interest rate hikes by the Norges Bank.
02:13High interest rates are hurting the housing market and making life more expensive for Norwegian 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.
02:29It 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 even Kuwait.
02:41And it makes sense to think now that all the riches are somewhere southward,
02:45as these places have strong oil-based economies and super-strong currencies.
02:50But in reality, better economies in the South are a current trend.
02:54Ever wonder why cold countries seem to be raking in the cash
02:58while the hot nations are just hanging out?
03:00Turns out, those living in chilly climates had to hustle just to survive winter.
03:05Think building shelter, stockpiling food, and keeping that fire burning.
03:10Meanwhile, those basking in the sunshine had it a little easier with hunting and foraging year-round.
03:15This 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 coldest cities,
03:25while Darwin, the warmest city, is lagging behind.
03:29Some might argue that this theory doesn't hold up when we look at ancient civilizations
03:32or modern hotspots like tropical Singapore.
03:36But 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.
03:45So, Norway may seem to have been bound to get rich historically and geographically.
03:51Still, 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 U.S.
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.
04:16But 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,
04:25which claims up to 20% of the world's liquid gold.
04:28Still, Venezuelan's economy is far from stable, so it's not all about oil.
04:35Although bested in forest size by other European nations,
04:39Norway was an unrivaled powerhouse in lumber during the Age of Sale.
04:43Thanks to its strategic fjord path,
04:46timber from its inland forests could quickly reach fjord-side mills and global markets.
04:50As 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,
05:08spurred growth across several sectors, from agriculture to fishing and banking.
05:12Despite being labeled poor in the 19th century,
05:15Norway's GDP per capita outshone Eastern and Southern European nations.
05:21The nation's ascendancy continues beyond the discovery of its oil reserves.
05:25Norway is unique, with a small population but sprawling land.
05:30Despite its vastness, the Nordics are scattered
05:32and considered one of the most spacious countries globally.
05:36Much of the North's territory stretches beyond the Arctic Circle,
05:39offering harsh landscapes with thin topsoil covering the bedrock.
05:43The tough terrain in Norway, full of mountains and with a short growing season,
05:47limits arable land to only 2.2%, similar to Yemen.
05:52The scattered arable land in small valleys makes extensive farming impractical,
05:57a far cry from the efficient farming in the U.S.
06:00With a huge chunk of land and coastlines, but a small population,
06:05Norway makes some serious cash from its reserves.
06:08Plus, nature has been pretty kind in Norway,
06:11with rich fishing grounds,
06:13hydropower from rivers,
06:14and 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,
06:26and petroleum activities have been a major game-changer for Norway,
06:29feeding its economic growth and funding its welfare state.
06:32But Norway didn't just sit back and watch the money flow in.
06:38They made smart moves,
06:40like creating a sovereign wealth fund to manage their oil wealth for the long haul.
06:44The fund sees some big bucks,
06:46currently standing at 1.7 billion Norwegian crooner,
06:50or over 160 million U.S. dollars.
06:53Norway uses the interest from this fund to boost its annual budget,
06:56ensuring top-notch health care, education, and welfare for its citizens.
07:00And here's the kicker.
07:02Norway's not resting on its laurels.
07:04They're investing in sustainable technologies,
07:07like offshore wind power,
07:08to secure a bright future beyond oil and gas.
07:12Now, Norway may be expensive,
07:14but it can't compete with the world's costliest place to live, Monaco.
07:18It's almost four times more expensive than the global average.
07:21So, if you're looking to rub elbows with the rich and famous,
07:25look no further than Monaco,
07:26with 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,
07:48well, take a second to make your guess.
07:50Ready?
07:50Welcome to Ashgabat, Turkmenistan's capital.
07:54A gallon of milk costs a whopping 15 US dollars,
07:57while a standard internet subscription plan will set you back 168 US dollars a month.
08:03Calm down, you're not poor.
08:05It'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 changes.
08:15One dollar equals 3.5 minutes,
08:17and it's been so since 2015.
08:20Local prices in the local currency grew to inflation,
08:24making it not proportionate to prices in dollars.
08:26The exchange rate never changes.
08:29So, if you live there, such prices don't seem to be extraordinary.
08:32But if you come with dollars, you're in for a pricey trip.
08:36That's it for today.
08:37So hey, if you pacified your curiosity,
08:40then give the video a like and share it with your friends.
08:42Or if you want more, just click on these videos and stay on the bright side.
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