Lecture 3 Economy of Western Europe and Scandinavian countries

Lecture 3

Economy of Western Europe and Scandinavian countries 

Economy of Norway

Plan

• •General information about the country
• •History of economic development
• •Agriculture, forestry and fisheries
• •Energy
• •Industry
• •Services sector
• •Foreign trade relations
• Workforce resources
• Tax system
• Transport
• Cooperation with the World Bank
• Doing Business
• Tourism
• Relations with the Republic of Uzbekistan

Economic overview

• Economic overview
• The economy of Norway is a highly developed mixed economy with state-ownership in strategic areas. Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era.
• Norway has a stable economy with a vibrant private sector, a large state sector, and an extensive social safety net.
• Geography
• Location
• Northern Europe, bordering the North Sea and the North Atlantic Ocean, west of Sweden
• Area
• total: 323,802 sq km land: 304,282 sq km water: 19,520 sq km

Land boundaries

• Land boundaries
• total: 2,566 km border countries (3): Finland 709 km, Sweden 1666 km, Russia 191 km
• Natural resources
• petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites, nickel, fish, timber, hydropower
• Population
• 5,509,591 (July 2021 est.)
• Capital
• name: Oslo geographic coordinates: 59 55 N, 10 45 E time difference: UTC+1 (6 hours ahead of Washington, DC, during Standard Time)

Population	5,367,580 (1 January 2020)[
GDP	$366 billion (nominal; 2020 est.)  $349 billion (PPP; 2020 est.)
GDP rank	33rd (nominal; 2020) 49th (PPP; 2020)
GDP growth	1.3% (2018) 1.2% (2019e) −6.3% (2020e) 2.9% (2021e)
GDP per capita	$67,989 (nominal; 2020 est.)  $64,856 (PPP; 2020 est.)[
GDP per capita rank	4th (nominal; 2020) 6th (PPP; 2020)
GDP by sector	agriculture: 1.6% industry: 34.7% services: 63.5%

Resources

• • Climate and geography – Mountains, rivers and Gulf stream – Electricity – The fjords and fertile soil – fish, timber and livestock
• • Oil – Increasing oil prices in the sixties and seventies made it possible to exploit oil from the North Sea.
• • Terms of trade – ”China-effect” → improved terms of trade. – Cheap import goods and expensive export products

Agricultural products

• Agricultural products
• milk, barley, wheat, potatoes, oats, pork, poultry, beef, eggs, rye
• Industries
• petroleum and gas, shipping, fishing, aquaculture, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles

Knowledge and Technology

• A public education system – Primary school to universities – Roughly 50 % of kindergartens are private – but publicly financed
• • Scholarships to pupils from poor families and stipends to all students
• • Growth in higher education – Understanding new technology – Implement new machines or production methods faster

Exports

• Exports
• $185.101 billion (2019 est.) $184.094 billion (2018 est.) $185.952 billion (2017 est.)
• country comparison to the world: 35
• Exports - partners
• UK 21.1%, Germany 15.5%, Netherlands 9.9%, Sweden 6.6%, France 6.4%, Belgium 4.8%, Denmark 4.7%, US 4.6% (2017)
• Exports - commodities
• petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish
• Imports
• $158.037 billion (2019 est.) $150.972 billion (2018 est.) $148.802 billion (2017 est.)
• country comparison to the world: 38
• Imports - partners
• Sweden 11.4%, Germany 11%, China 9.8%, US 6.8%, South Korea 6.7%, Denmark 5.4%, UK 4.7% (2017)
• Imports - commodities
• machinery and equipment, chemicals, metals, foodstuffs

Main commodity

https://www.nordeatrade.com/en/explore-new-market/norway/economical-context

Thank you!

Thank you!