Norway

Capital: Oslo

Local time:
It is %T:%M %A in Oslo

Exchange rate on :

GDP growth rate: 1.9% in 2012

FDI stock: 93 688 million USD in 2007

Country risk: See the country risk analysis from Norway provided by Ducroire.

Economic trends

Norway has the second highest GNP per capita in the world. The country is also at second place in UNDP's Human Development Index. Norway was affected by the international economic recession. In effect, despite growth remaining positive in 2008, it weakened. Growth was negative in 2009 and this trend is expected to continue until 2010. In terms of purchasing power parity, GNP per capita reached USD 55,600. Norway is expected to keep a significant current account surplus (about 17% of the GNP). Inflation has been low in recent years and should remain so in the coming years. The national budget is strongly in surplus and the unemployment rate remains low.

Norway was strongly impacted by the global economic recession, even though the drop in production was less severe than in other countries. The export sector was hit head on and domestic demand, mainly investment, shrunk rapidly. The authorities immediately reacted to the capital market difficulties with several measures aimed at reestablishing the credit markets' normal  performance and stimulating production.

Even though Norway is not part of the European Union, it participates in the single market through the EEA agreement (European Economic Area). The country has a mixed economy, which depends on both the market and the State. The state has majority shareholding in the production of oil, hydroelecric energy and aluminum. Overall, the government controls 30% of publicly listed companies.

Although very dependent on oil prices, the Norwegian economy is very sound and has positive prospects.

Main branches of industry

Agriculture contributes about 2% to the GNP. Norway is one of the biggest exporters of fish in the world making fishing is an important activity. Government subsidies for agriculture are considerable.

Industry in Norway has traditionally been based upon the country's natural resources and abundant hydroelectric power. Norway is well endowed with natural resources like oil, gas, hydraulic power, forests and minerals. Oil production dominates the economy, accounting for nearly a quarter of the GNP. Average production of crude oil in 2006 was 2,8 million barrels per day. Norway is also a major producer and exporter of natural gas. There is a concensus among the political parties to save oil and gas revenues for future generations, to the point where Norway has one of the biggest sovereign funds in the world. Shipbuilding, metals, pulp and paper, chemical industries, machinery and electrical equipment are Norway's primary manufacturing industries. Norway has one of the biggest and most modern fleets in the world.

The services sector is highly developed and accounts for more than three-fourths of the GNP. Domestic economic activity is strong.

International trade

Internationally, Norway has an advanced economy. Norway traditionally exports energy-intensive products and imports technology-intensive products. Its main trade partners are the European Union countries.

The country is one of the world's biggest oil exporters. Oil and gas exports account for almost 70% of the country's exports. Norway is the biggest Western European energy market supplier of natural gas. The overall trade surplus is considerable. This Scandinavian country is also the world's largest exporter of fish. It exports namely salmon, which represents one third of all fish exports. Overall Norway is ranked 30th amongst the world's biggest exporters. Industrial products (ships, oil platforms, etc) constitute nearly 10 % of total exports.

Freight income from foreign maritime traffic accounts for nearly 45% of exports in the services, finance and corporate services sectors. Norway mainly imports manufactured goods (machinery, carriers and information technology), which accounts for 40% of total imports.

The country showed a surplus trade balance in 2008, a trend which should continue during the coming years.

Learn more

For more information on Norway

The Country Profiles of the Foreign and Commonwealth Office

Countries information of the UK Trade and Investment Website

For more international news

Business News of the British Chamber

For more advices

The business advices of the Foreign and Commonwealth Office

Are You Ready to Export? - The online test of the UK Trade and Investment Website