Economic trends
After fifteen years of a strong growth (more than 5% in average annually), Norway has been touched by the global economy recession; however, the decline in production was less severe than in other countries. In 2009, the growth was slightly negative (-1.4%), a limited contraction by the rebound of oil prices. The growth rate has slightly increased in 2010, stimulated by the relaunching measures, household consumption and private investment. This slow revival trend should continue in 2011.
Even though, Norway strongly depends of oil prices, the Norwegian economy is very solid and its perspectives are positive. The government has progressively suppressed the exceptional measures taken during the crisis in order to prevent overheating its economy. As it was announced on the budget 2011, the priority is to reduce the public deficit (without including oil). Confronting a long-term challenge, which is the ageing of the population, the government has also introduced a reform on the retirement insurance system.
Norway is a rich country, which has the second highest GNP per capita in the world (USD 55,600 in terms equivalent to purchasing power). The country also ranks second place in the UNDP's Human Development Index. Contrary to the initial fears, unemployment was controlled during the crisis and it has been stable at a very low rate (3.5% of the active population).
Main branches of industry
Agriculture contributes to about 2% of the GNP. Fishing is a very important activity, Norway is one of the biggest exporters of fish in the world. Government subsidies for agriculture are very considerable.
Norway's economy is essentially based upon the exploitation of its natural and energy resources (oil, gas, hydroelectric power, forests and minerals). Oil production dominates the economy, accounting for nearly a quarter of the GNP. Norway is also a major producer and exporter of natural gas. There is a consensus among the political parties to save oil and gas revenues for future generations, to the point where Norway has one of the largest sovereign wealth funds in the world. Shipbuilding, metals, pulp and paper, chemical industries, machinery and electrical equipment are Norway's main manufacturing industries. Norway has one of the biggest and most modern fleet in the world.
The services sector is highly developed and accounts for more than three-fourths of the GNP.
International trade
Norway has a widely open economy. Trade represented almost 75% of the GDP in 2009.
Traditionally, the country exports energy-intensive products and imports technology-intensive products. Its main trade partners are the countries of the European Union.
The country is the third largest exporter of oil in the world, the largest supplier of natural gas to the the countries of Western Europe, the largest exporter of fish in the world. Overall, Norway is classified among the 30 largest exporters of the world. The industrial products (ships, oil platforms, etc.) constitute nearly 10% of total exports. Norway mainly imports manufactured merchandise (machines, transporters, information technology) which accounts for 40% of its total imports.
The surplus in the trade balance is enormous. The country's trade balance is structurally positive and this trend should continue during the next following years.
© Export Entreprises SA, all rights reserved.
Last updates:
