Why did Norway create the Government Pension Fund Global?

Norway established the Government Pension Fund Global—originally created in 1990 as the Government Petroleum Fund—primarily to stabilize the national economy and insulate it from the volatility of global oil prices.123

Because the Norwegian economy is heavily dependent on its petroleum industry, the government sought to mitigate the impact of economic downturns caused by fluctuations in oil prices. By depositing budget surpluses into this fund and investing them overseas, Norway aims to preserve its resource wealth for future generations and diversify its national income beyond commodity revenues. This prudent financial strategy has allowed Norway to maintain economic prosperity and prepare for a future when petroleum profits may no longer be as lucrative.123