Who does what in the Commercial section At $70,961 per capita GDP, Norway is the third wealthiest in the world after Luxembourg and the US. Norway's unemployment rate is low, averaging around 4.4%. However, this has resulted in acute labour shortages, particularly in the health and construction sectors. The industry has reacted by employing large numbers of immigrant workers. Indicators show that housing investments may have peaked and that housing starts have dropped in the past year.
Norway is the world's third largest exporter of oil, after Saudi Arabia and Russia, and 8th largest producer. It’s also the world 4th largest exporter of natural gas. The oil and gas industry accounts for most of Norway's wealth. Consequently, the Government has plans to prepare the population for when oil and gas production will begin to decline (the estimation is 2050). Norway has been saving its oil-boosted budget surpluses in a Government Petroleum Fund, which is invested abroad and now is valued at more than $180 billion. Interest rates have remained low during the past year, with growth in domestic borrowing reaching new heights. This coupled with record oil prices has raised concerns that interest rates may again be on the rise, but the strength of the Norwegian Krone has kept rates in check for the time being.
According to a recent survey by the Economist Business Unit, Oslo has become the most expensive city in the world. Also, in 2005, Norway continues to be ranked 1st overall in the UN Human Development Index, a credit to Norway's sophisticated social system.
Although not a member, Norway is heavily dependant on the European Union (EU) as an export market. Norway is a member of the European Free Trade Association (EFTA), which is in a very comprehensive economic and trade union with the EU (except for food and fish products), making Norway an economically de facto EU member. In December 1997, Canadian and Norwegian Ministers signed a bilateral Trade and Economic Cooperation Agreement (TECA) in Ottawa. Canada and Norway have been involved in the negotiation of the Canada/EFTA Free Trade Agreement since October 1998.
Norway is Canada's most important Nordic trading partner, and ranks seventh among European trading partners. The balance of trade is largely in Norway's favour, primarily due to Norwegian exports of petroleum products which account for over 90% of Norwegian exports to Canada. Norwegian exports to Canada increased to $4.9 billion in 2004, while Canadian exports increased to $1.5 billion in the same year. Canadian exports to Norway consist mainly of primary products, namely ore mattes and concentrates. Exports of machinery and aircraft and aircraft parts are also significant. The Norwegian airline Widerøe operates the largest Bombardier Dash 8 fleet in Europe. Ontario accounts for most exports to Norway (83%). Other provincial exporters include Québec (5%) and Nunavut (2%).
Norwegian exports to Canada include petroleum, machinery, fish and seafood, and metals. Québec, New Brunswick, and Nova Scotia account for most Norwegian exports to Canada at 44%, 34%, and 15% respectively. Although the statistics given by Norway and Canada concerning 2004 Foreign Direct Investements do not match (Norway: 7.1 billion / Canada: 1.8 billion), it is agreed that Norway is an important source of foreign direct investment for Canada. Norway's most significant investor in Canada is Norsk Hydro, Norway's largest company. Norsk Hydro has led the way in investing Norwegian capital and expertise in Canada's offshore oil and gas industry with a 5% interest in Hibernia, 15% in Terra Nova, and more than 50 exploration licences. Norsk Hydro's magnesium smelter at Bécancour is its largest single investment. Other important Norwegian investors are Aker Kvaerner (Chemicals and Energy) and Pan Fish (Aquaculture).
Last updated : March 2006
Visit our Trade Commissioner Service in Oslo.
We offer Norwegian companies services which put them in touch with Canadian companies and assist them identify Canadian products to introduce to Norway. Active promotion of Norwegian investment into Canada to create employment is one of our core activities. Contact us to find out how we can help your business, or check out our site on InfoExport. For fact sheets and country profiles visit CanadaEuropa.
The stated objective of the CNBA (Canadian Norwegian Business Association) is to strengthen the business and cultural ties between Canada and Norway.
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For further listings of exhibitions in Norway visit the following site: www.messe.no
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