UK

Everyone In Norway Is Now A Millionaire

10/01/2014 16:27 GMT | Updated 25/01/2014 21:01 GMT
Bloomberg via Getty Images
Various denominations of the krone Norwegian bank notes are seen displayed for a photograph at a Forex currency exchange center in Oslo, Norway, on Thursday, April 26, 2012. Norway's central bank last month lowered its main interest rate for a second time since December to support growth and keep krone gains in check. Photographer: Kristian Helgesen/Bloomberg via Getty Images

Everyone in Norway is now a krone millionaire thanks to their sovereign wealth fund soaring on the back of high oil prices.

According to Norway's central bank, the sovereign wealth fund ballooned to 5.11 trillion krones (£503 billion), just over a million times the country's estimated 5,096,300 population.

James Howat, European economist at Capital Economics told the Huffington Post UK: "Norway has certainly dealt with the windfall from the North Sea oil much better than everyone else has done."

Norway's sovereign wealth fund, the biggest in the world, owns around 1% of the world's stocks along with bonds and real estate from London to Boston.

The fund, equating to 183% of the country's 2013 gross domestic product, is set to soar to 220% around 2030. The government is able to spend 4% of the fund each year, fractionally more than the annual return on investment.

"The fund is a success in the sense that parliament has managed to put aside money for the future. There are many examples of countries that have mot managed that," said Oeystein Doerum, chief economist at DNB Markets.

Sadly for Norwegian citizens will be unable to seize their new riches as Norway has amassed the money, taken from its North Sea oil revenues, for an economic emergency.