Doing Business with NorwayExecutive Conference – Mostar, 15 October 2010Ambassador 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 non-OPEC 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.

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.

 

Economy: Recovery slowing amid increased uncertainty, says Interim Economic Assessment

 

Possible peak in the OECD areaOctober 2010

F is c al balanc e2010-2011 OE C D P rojec tion

-3.3 -2.0

-6.5

-2.1

-7.9-6.3 -7.2-7.8 -6.6 -7.6-6.7 -5.7

-8.9 -8.3-11.0

-10.7-13

-8

-3

2

OE C D E uro area US A J apan

% o

f G

DP

2008 2009 2010 2011

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

Bosnia & Herzegovina

Norway’s Trade

with

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

Norway - Bosnia and Herzegovina Imports & Exports, 2000 - 2009

2006 2007 2008 2009

Imports

37.316 44.548 68.073 52.586

Exports

21.033 16.418 17.435 17.774 Norwegian Kroner (NOK) Thousands- 1000Source: Statistics Norway

• 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

Fruit and vegetables

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

Generalized System of Preferences - GSP

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 procurementhttp://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