NORWAY

Double whammy from Covid-19 and oil shocks

AA1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD 403.336bn (World ranking 30, World Bank 2019)
Population 5.3mn (World ranking 118, World Bank 2019)
Form of state Constitutional Monarchy
Head of government Erna SOLBERG
Next elections 2021, legislative
  • Full integration in the EU’s internal market and free travel zone. Member of the WTO and the OECD
  • Strong business environment supported by a wide political consensus
  • Second-highest per capita income in Europe after Luxembourg and fourth globally
  • Highly skilled and educated workforce
  • Profitable banking system and financial stability
  • Robust fiscal framework and ample support by the Government Pension Fund Global
  • Persistently low energy prices
  • Structurally weak growth in advanced economies
  • Brexit impact: the UK is the first export market for Norway
  • Low diversification of the economy
  • Very high household debt level (225%)
  • High corporate and personal tax rates
  • High unit labor costs

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United Kingdom 19%
1
14% Sweden
Netherlands 13%
2
12% Germany
Germany 10%
3
9% China
France 9%
4
7% Denmark
Sweden 9%
5
7% United Kingdom

Trade structure by product

(% of total)

Exports Rank Imports
Natural Gas 26%
1
7% Ships
Crude Oil 26%
2
6% Cars And Cycles
Meat 8%
3
4% Miscellaneous Hardware
Refined Petroleum Products 5%
4
4% Electrical Apparatus
Non Ferrous Metals 5%
5
3% Non Ferrous Ores
The payment behavior of domestic companies is good, with payments made within 30 days on average, and domestic courts are fairly efficient in dealing with disputes in a timely manner.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

Having said this, negotiation and compromises are considered as a pre-requisite to legal action and obtaining effective support in this regard is important.

In the event of insolvency, recovering the debt becomes difficult as debt renegotiation schemes are not effective and the priority rules set forth in liquidation proceedings make it unlikely for unsecured creditors to receive any part of the proceeds.

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

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