|
|
|
FOREIGN TRADE
The country is richly gifted with natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on its oil production and international oil prices, with oil and gas accounting for one-third of exports. Only Saudi Arabia and Russia export more oil than Norway. Initially, the coastal waters provided fish for export. Today, Norway is among the world's largest exporters of fuels and fuel products, machinery and metal products.
Norway is not a member of the EU, though has good access to the single market for most of its products through the European Economic Area (EEA) agreement and participates in regular consultations. Germany, UK, Sweden and Netherlands, France and Denmark are its major trading partners.
CHALLENGES FACING NORWAY
Despite the highest quality of life worldwide, Norwegians still worry about that time in the next two decades when the oil and gas begin to run out.
|
Accordingly, 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 $43 billion.
Also, there is a need to strengthen competition in product markets. Norway possesses substantial scope for further gains from pro-competitive reforms, which will be critical in moving towards a post-oil economy.
Another cause of concern is the slow growth rate observed in GDP, it was a lackluster 1% in 2002 and 0.5% in 2003 against the background of a wavering European economy.
To manage monetary and fiscal policies, and the balance between them has been one of the important issues for the government. This is needed in order to strengthen policy credibility and to provide a stable framework for growth. Last but not the least challenge for the Government is the financing of pension obligations for its aging population.
Norway's economy is unique because of its huge offshore sector, yet the dominance of service sector in the total Gross national income makes it akin to most of its west European counterparts. The primary sectors other than oil (agriculture, forestry and fishing) and secondary sectors (particularly manufacturing) have gradually declined in terms of contribution to GDP. Data from World Bank shows that in 2002 agriculture, industry and service sector had a share of 1.9 %, 38.3% and 59.9 % respectively in the country's GDP.
Main agricultural commodities are barley, wheat, potatoes; pork, beef, veal, milk and fish. The principal industries are petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles and fishing industry. Almost 74% people are employed in the service sector, industry employs 22%, and agriculture, forestry, and fishing engage 4% of the population.
|
|
|