One European nation escaped the worldwide financial meltdown and recession more or less unaffected. That was Norway, a country which saved its money - rather than spent it - through the boom years. As a result of frugal financial management, Norwegian housing prices and consumption have been on the upswing and interest rates affordable also during the deepest global crisis the latest years. Norway’s fiscal responsibility of its income from enormous oil and gas reserves has allowed the nation to build one of the globe’s largest investment funds.

After large deposits of gas and oil were discovered in the 1970s, Norway didn’t go on a spending spree, and channelled its revenues into a state investment fund (The Government Pension Fund). As of the valuation in June 2007, it was the largest pension fund in Europe and the fourth largest in the world. As of 31 December 2010 its total value is NOK 3,077 billion ($525 billion), holding 1 per cent of global equity markets. With 1.78 per cent of European stocks, it is said to be the largest stock owner in Europe. The government - with very few exceptions - can spend only four percent of those revenues annually.

Beyond its oil and gas revenues, strict banking regulations - tightened after a banking crisis in the early 1990s - shielded Norway from the credit crisis. Norwegian banks made loans wisely and stayed away from exotic investments and financial products over the past decade. “They (the United States) got all the bright guys to make all kinds of fantastic products. Very creative. And it turned out it was maybe not the best solution in the end,” Mr. Amund Utne, a director of Norway’s Finance Ministry, said, with typical Norwegian understatement. “I think Norwegian banks are not as creative. In this situation, it may be good to be somewhat boring.”

Norway also was immune from the housing bubble. According to Bjorn Erik Orskaug of DnB NOR, Norway’s largest bank, “Housing prices are back up. Consumption is up. Banks are lending normally to the household sector and interest rates are staying low.”