Norwegian Economy

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Norwegian Economy

• Kristoffer Eide Hoen
• Economist, NHO

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A few facts about Norway

• Population of 4,5 million
• Population growth 0,45
• 65 of population aged 15-64 years
• Life expectancy 79 years
• Area (sq km) 324.220
• Largest cities
• Oslo, 512.600
• Bergen, 233.300
• Trondheim, 151.400

• Government today Labour Party, Centre Party,
  Socialist Left Party
• Parliament (Storting) with 169 elected
  representatives from 7 major political parties
• Elections every 4 years
• Regional administration
• 19 counties
• 434 municipalities

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Sparsely populated long distances
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NO Norway SE Sweden DK Denmark DE Germany UK
United Kingdom IE Irland NL Netherlands FR
France FI Finland US US
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Strong economic growth GDP per capita 1970-2004
(PPP-adjusted)
Norway
????
OECD
????
Source OECD
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Total Norwegian exports by industryBefore and
after the petroleum industry
1970
2005
Source Statistics Norway
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Petroleum exports 2005, Norway and russia
Source Ecowin
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Competitive Norwegian industrial clusters
SEA FOOD
Fishing, fish farming, fishing boats,
equipment
HYDRO ELECTRIC POWER Equipment, power
generation power distribution, metallurgical
industries
MARITIME INDUSTRIESShipyards, ships gear,
offshore, shipping services, maritime RD
FOREST INDUSTRIES Saw
mills, wood products, chemical wood pulp, paper
industry, packing special products
PETROLEUM INDUSTRIES Oil and gas companies,
offshore industry, offshore service, shipping,
petrochemical industries.
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Value of traditional exports (excl. petroleum
products and ships)By continent in 2005
Source Statistics Norway
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Norway Russia Trade 2006
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Public balance Net borrowing/lending of general
government sector
Norway
EU-15
Source Eurostat
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Skatter og avgifter Skatteinntektene som andel
av BNP
Kilde IMD/NHO
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Development of the Norwegian Petroleum Fund Value
at the end of the year 1996-2009. Estimate
2006-2009
Source Norges Bank/ Ministry of Finance
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GlobalizationGlobalization means more equal
distribution between countries
China
India
EU-10
US
EU-15
Nordic countries
Source NHO/Ecowin
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CompetitivenessIMD World Competitiveness
Rankings Europe - 2006
Source IMD
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Share of employment in Norway and abroad- the 30
largest companies
NOR
91
NOR
66
NOR
41
Source SNF
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Replacement of domestic suppliers with foreign
suppliers last 12 months, 2005
Share of enterprises with a positive answer
Source NHO/ Economic survey, autumn 2005
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Foreign workers in Norway
Source Sentralskattekontoret for utenlandssaker
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Labour costs in Norway, relative to trading
partners In common currency
2001-2005 30 000 jobs in manufacturing
disappeared
142
138
Source TBU/estimate NHO (2006 with currency as
in may, and wage growth equal to trading partners
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Terms of trade 1830 2006Index. 2000100
Kilder Statistisk sentralbyrå og Norges Bank
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Russian and Norwegian strenghts
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Russian and Norwegian strenghts
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Russian and Norwegian strenghts
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Advantages

• A high standard of living (No.1 on UNs Human
  Development index)
• An open economy
• High productivity
• Natural recources
• A high level of education
• High participation in the labour force (Males
  76,2 pct, Females 68,7 pct.)
• Ability to use new technology
• Ability to adopt and change when necessary

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but challenges

• Small domestic market
• Petroleum economy/ governance challenges
• Tax level among the highest in the world
• A high wage-level for workers, more competitive
  for engineers
• A strong krone threatens exports
• Infrastructure - roads
• Demographic development
• Limited influence in EU

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Russian and Norwegian strenghts