Slowly running roebucks


LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD551,0317bn (World ranking 22, World Bank 2018)
Population 10,18mn (World ranking 88, World Bank 2018)
Form of state Constitutional Monarchy
Head of government Stefan LOFVEN (Prime Minister)
Next elections 2022, legislative
  • Highly skilled and educated labor force
  • High value-added manufacturing industries with one of the highest levels of R&D spending in the world
  • Very diversified export structure in terms of products
  • Sound public finances
  • Strong and effective institutions
  • Relatively low corporate tax rates compared to peers
  • High degree of openness to foreign investments
  • Excessive household debt
  • Steep rise in house prices
  • Weak governing coalition
  • Ageing population
  • High personal income tax compared to OECD
  • High unit labor costs; strongly regulated labor market

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Norway 10%
18% Germany
Germany 10%
8% Netherlands
United States 7%
8% Norway
United Kingdom 7%
8% Denmark
Denmark 7%
6% United Kingdom

Trade structure by product

(% of total)

Exports Rank Imports
Road vehicles 11%
11% Road vehicles
Industrial machinery (others) 7%
9% Petroleum (and related products)
Paper and paper manufactures 6%
6% Telecom. and sound record.
Medicinal and pharma. products 6%
6% Electrical machinery, apparatus and appliances
Telecom. and sound record. 5%
5% Industrial machinery (others)
The payment behavior of domestic companies is good and domestic courts are fairly efficient in dealing with disputes in a timely manner, however collecting debt through pre-legal negotiation remains the most effective option.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

Recovering debt becomes very difficult when the debtor becomes insolvent, even though debt renegotiation schemes allow up to 75% writte-off of the debt, clawback mechanisms and Retention of Title privileges. The priority rules set forth in liquidation proceedings make it unlikely for unsecured creditors to receive any part of the proceeds.

Contact Euler Hermes

Economic Research Team