Norway is a constitutional monarchy with a parliamentary democratic system. Though not an [[European Union (EU)]] member, it participates in the European single market through the [[European Economic Area (EEA)]] agreement. Its prosperous economy combines free-market capitalism with a comprehensive welfare state, largely funded by its vast oil and gas resources managed through the world's largest sovereign wealth fund. Key economic sectors include petroleum, hydroelectric power, fishing, shipbuilding, and renewable energy. Norway consistently ranks among the world's highest in living standards, income equality, and social mobility, while maintaining its own currency (Norwegian krone) and significant state ownership in strategic industries.