Transcript Doing Business with Norway

Doing Business with Norway
Executive Conference – Mostar, 15 October 2010
Ambassador Jan Braathu
Quick facts about Norway
• Area: 385 199 km2
• Population: 4.8 million
• Languages: Norwegian and Sami
• Capital city: Oslo
• GDP: € 310,2 Billion
• GDP per capita: € 64.632,7
• Currency: Norwegian Krone (NOK)
• Exchange rate: € 1 = NOK 7,968 (29.06.2010)
Economic overview
With a GDP per capita of €64,600 in 2008 (2nd highest in
the EEA after Luxembourg) and an estimated national
budget surplus, the Norwegian economy is very sound.
Norway's real incomes are among the highest in the
world; employment is high and unemployment low.
Public finances are boosted by significant revenues from
the petroleum sector.
The oil and gas sector constitutes around 25% of the
Norwegian GDP and 52% of Norwegian exports (35 times
higher than the export value of fish).
Traditional economic activities are shipping (fourth largest
fleet in the world), fisheries and fish farming.
Norway is one of the top three seafood-exporting nations
worldwide. Around 95% of production is exported.
The construction and operation of the largest offshore
installations on earth has led to the establishment of a
substantial offshore technology industry.
Norway has become after Russia the most important nonOPEC oil exporter.
Norway is the third largest exporter of crude oil, after Saudi
Arabia and Russia.
Norway is Western Europe's most important source of
natural gas. Norwegian gas exports account for
approximately 15% of EU gas consumption, with nearly
100% of Norwegian exports going to EU.
Main importers: Germany (almost 30%), France (almost
20%), UK (18%) and Belgium (8%).
Norway in international trade
• 0,1 % of world population
• 1,2 % of world export (no. 28 in the world)
• 1,1 % of world import (no. 38 in the world)
• 75 % of GDP consists of trade (average OECD 45%)
• Value of total import: € 60,1 billion (2008)
• Less than 25 % of imports are consumption goods
NORWAY & the EU
Norway's trade flows have traditionally been dominated by
trade with the EU and this trend is being enhanced after the
latest EU enlargements.
As member state of the European Economic Area (EEA)
Norway fully applies the whole acquis communautaire except
for agriculture and fisheries.
Norway is the EU's 4th most important import partner for trade
in goods with €91.85 billion in 2008, after China, USA, and
Russia
…. and the 6th export market with €43.58 billion, after the USA,
Russia, Switzerland, China and Turkey.
Norway's trade with the EU shows a surplus of €48.27 billion.
Norway’s imports from the EU are mainly manufactured
products with a share of 81.3% in 2008.
Norway's exports to the EU are concentrated on primary
products (share in 2008 was 71% thereof 61.1% on supply of
energy.
Despite intensive technological and industrial developments
that have taken place in Norway, natural resources still
account for the bulk of Norwegian exports.
Norway is the main source for the EU of primary aluminium.
60% of EU total imports of alloys and 15% of unwrought metal
originate in Norway.
Services account for a growing share of Norway's world
trade. During 2008, Norway exported services worth
approximately €31.1 billion, imports totalled to 29.6 billion.
OECD Forecasts
Growth rising faster than expected but risks
increasing too, says OECD Economic Outlook
26/05/2010 –
Economic activity in OECD countries is picking up faster than
expected but volatile sovereign debt markets and overheating in
emerging-market economies are presenting increasing risks to the
recovery, according to the OECD’s latest Economic Outlook.
Economy: Recovery slowing amid increased uncertainty,
says Interim Economic Assessment
9/9/2010 - The world economic recovery may be slowing faster than previously
anticipated, according the OECD’s latest Interim Economic Assessment. Growth in
the Group of Seven countries is expected to be around 1½ per cent on an
annualized basis in the second half of 2010 compared with the previous estimate of
around 2½ per cent in the OECD’s May Economic Outlook.
The OECD says the loss of momentum in the recovery is temporary although
uncertainty has increased.
Possible peak in the OECD area
October 2010
F is c al balanc e
% of G DP
2010-2011 OE C D P rojec tion
2
-3
-8
-2.0
-3.3
-7.9-7.8-6.7
-2.1
-6.3-6.6-5.7 -6.5
-13
OE C D
2008
-8.9
-10.7
-11.0
E uro area
2009
US A
2010
2011
-7.2-7.6-8.3
J apan
NATIONAL INSTITUTE ECONOMIC REVIEW No. 213 JULY 2010
The world economy
• The world economy will expand by 5.0 per cent in 2010 and 4.4 per
cent in 2011.
• World trade will increase by 14.2 per cent this year and 8.8 per cent in
2011.
• The Chinese economy will grow by 11.6 per cent in 2010 and 8.3 per
cent next year.
• The US economy will grow by 3.1 per cent in 2010 and 3.0 per cent
next year.
• The Euro Area will expand by 1.3 per cent this year and 1.8 per cent in
2011.
World Bank, October 8, 2010
Norway’s Trade
with
Bosnia & Herzegovina
Norway - Bosnia and Herzegovina Imports & Exports, 2000 - 2009
2000
2001
2002
2003
2004
2005
Imports 3.522
6.745
6.960
11.611
20.962
22.488
Exports
28.963
20.353
13.385
7.300
23.175
24.276
2006
2007
2008
2009
Imports 37.316
44.548
68.073
52.586
Exports
16.418
17.435
17.774
21.033
Norwegian Kroner (NOK)
Thousands- 1000
Source: Statistics Norway
Fruit and vegetables
• Total value of imports: 1,4 bill. USD (2008)
• 92 % of fresh fruits consumed in Norway are imported
• 60 % of vegetables consumed in Norway are imported
• South Africa is the 6th largest import country
- 2,8 % share of imports
- 3,9 % share of value of imports
Main importers:
- Bama
- ICA Norgesfrukt
- Coop
Generalized System
of Preferences - GSP
The GSP-system is an offer of duty relief
allowing the poorest countries in the world
the opportunity to import their goods duty
free into Norway, or with reduced duty
rates. The scheme was changed with
effect from 1 January 2008.
www.Toll.no
Nortrade
Nortrade is Norway's official trade portal, and it was established in
1996 by the Norwegian Trade Council as one of the first official
trade portals in the world.
Nortrade contains updated information for over 4000 Norwegian
companies that deal in export, import or other forms of
international operations. The database's contents consisting of
industry codes for products and services are divided into 35
business sectors. You can seek all companies, products and
services in 7 languages.
Doffin – Database for public procurement
http://www.english.doffin.no/
Welcome to the Norwegian national database for public procurement –
Doffin!
This website enables Norwegian public authorities to comply with
Norwegian public procurement regulations by allowing the creation and
publication of tender notices.
Since all notices are published on this site, it is also a great resource for
suppliers interested in business opportunities in the public sector.
This website is managed by The Agency for Public Management and
eGovernment (DIFI), and funded by The Ministry of Government
Administration and Reform (FAD).
Factors for Competitiveness
• Quality
• Price
• Reliability: Adherence to contracts and deadlines
• Traceability
• Health safety
• Ethical Trade / Corporate social responsibility