In summary: – Årdal is the most “export-intensive” municipality in Norway, according to a new survey. – Mainland Norway has never before exported so much to the EU, with a value of NOK 675 billion in 2023. – The low krone exchange rate offers both advantages and challenges for export companies.- There is discussion as to whether Norway should set up a “krone commission” to stabilize the krone exchange rate.- Income from oil and gas exports has fallen by NOK 800 billion, mainly due to the stabilization of the gas price.- Going forward, gas exports are expected to fall below NOK 1,000 billion for the first time since 2020. The summary has been prepared by an AI service from OpenAI. The content is quality assured by news’s journalists before publication. Analysts at Menon Economics have calculated which municipalities export the most (see below). The figures show that the municipalities are concentrated along the coast and the fjords, and that the power-intensive industry accounts for the largest export value. – I am proud to be a mayor in a municipality that contributes so much to value creation in Norway, says Årdal mayor Christian Sønstlien (Ap). – This report confirms how important value creation in several of the district municipalities is for Norway and Europe. These municipalities export the most Årdal Sunndal Sørfold Høyanger Leka Solund Bremanger Smøla Meløy Flatanger Dønna Eidfjord Rødøy Måsøy Vevelstad The analysis shows that two thirds of exports go to the EU/EEA. – This survey underlines the importance of the EEA agreement for the Norwegian economy, says NHO director Ole Erik Almlid. – This shows again that good and right framework conditions help to create great value, says Årdal Mayor Christian Sønstlien (Ap). Photo: Halvor Molland Low krone exchange rate is good news for export companies If we ignore oil and gas, exports from mainland Norway were NOK 675 billion in 2023. That is the highest amount ever. In total, Norwegian exports lay the foundation for 630,000 jobs, which corresponds to around one in five Norwegian jobs. About the report 2/3 of Norwegian exports go to the EU/EEA. In 2023, this represented a value of NOK 1,600 billion. Mainland Norway’s exports to the internal market, i.e. exports excluding oil and gas, amount to NOK 675 billion. It is the highest mainland export to the internal market ever. Vestland is the county that exported the most to the EU/EEA in 2023 to a value of NOK 130 billion. Møre and Romsdal have the largest share of employed people supported by exports. In 2023, power-intensive industry was Norway’s largest export industry apart from oil and gas to EU/EEA countries, with an export value of over NOK 130 billion. Power-intensive industry was followed by the maritime industry and the seafood industry, with respectively NOK 110 and 100 billion in export value. The report has been commissioned by NHO. Click here to read the report in its entirety. The low krone exchange rate is basically good news for export companies who get more in return for the goods they sell abroad. Nevertheless, several companies have reported that it “may be too much of a good thing”. There are several explanations: If the companies get 15 percent more for the goods they export, they also have to pay 15 percent more for the goods they import from the same currency area. The so-called frontline model means that a low krone exchange rate creates wage growth, which in turn increases inflation. The consumer price index (CPI) rose 2.6 per cent from June 2023 to June 2024. The low krone exchange rate makes it more difficult to recruit foreign labor (whose wages are in Norwegian kroner). Large fluctuations in the currency market make it more difficult for companies to plan long-term. Støre: – Don’t mess with the central bank governor’s mandate During the party leader debate in Arendal last week, it was discussed whether Norway should set up a “krone commission” to assess whether Norway should stabilize the krone exchange rate by tying it to the euro. The proposal was launched by Liberal representative Sveinung Rotevatn, but so far has few supporters. The Prime Minister warned Jonas Gahr Støre against putting the krone in play or “ködde” with the mandate of the central bank governor. – If we set up a commission to look at the krone exchange rate, then we are sending a signal to the world: Just wait a bit, and we will change the krone exchange rate, he said. The falling krone exchange rate over the last ten years has different effects on different types of export companies. Norges Bank intervened in the foreign exchange market During the corona crisis in March 2020, the krone collapsed and weakened by three kroner against the euro in two weeks. The “extraordinary situation” caused Norges Bank to start buying up Norwegian kroner to strengthen the exchange rate. It is the only time in recent times that Norges Bank has intervened in the foreign exchange market, and Ida Wolden Bache has made it clear that similar intervention is a long way off. The falling krone exchange rate over the last ten years affects different types of export companies differently: For the maritime industry, which imports hulls and other large constructions, the weak krone has a negative effect. For the power-intensive industry and the farming industry, which do not import as many input factors, the weak krone is beneficial. For businesses in tourism, which is also an export industry, the krone exchange rate encourages foreign and Norwegian tourists to choose Norway as a holiday destination. In March, the Export Report for 2023 showed that revenues from oil and gas exports fell by NOK 800 billion. The main reason for the fall is that the gas price has stabilized at a more “normal” level. Going forward, the authors of the report expect gas exports to fall below NOK 1,000 billion for the first time since 2020. They specify: – The forecasts are still characterized by great uncertainty as a result of the war in Ukraine and potential escalation of conflicts in the Middle East. Aleksander Åsnes Anne Kristin Førde, Bremanger mayor – I am not surprised by what emerges from the investigation. I completely agree with NHO director Ole Erik Almlid about the significance of the EEA agreement for the Norwegian economy and Norwegian society. William Jobling / news Peggy Hessen Følsvik, LO head – Growth in exports to the international offshore wind industry is very positive and completely in line with LO’s strategy and wishes for a sustainable restructuring of Norwegian business. It is very good to see that there is underlying volume growth there, also when we correct for the drop in the krone exchange rate. John Trygve Tollefsen Tone Lunde Bakker, Eksfin director – The high level of Norway’s exports of goods and services shows that the Norwegian economy is on the right track in the transition. At the same time, we see that future growth in export earnings cannot be taken for granted. Norway has a lower share of exports than the average in Europe. Yara Sunniva Ihle, head of authority contact and communication at Yara – Norwegian industry is world-leading, but we depend on an open market to sell our products. At a time when global trade is under increasing pressure, good trade agreements are more important than in a long time. Norwegian exports must be prepared for the future, and arrangements must be made so that the products Norway exports can be restructured to meet increasingly stringent climate requirements. Hilde Nilsson Ridola / news Håkon Haugli, Innovation Norway – We need to rise to a growth level like Denmark and Sweden, if we are to reach the goal of a 50 percent increase in exports excluding oil and gas by 2030. Fortunately, we see great potential in several parts of Norwegian business, and that Norway can contribute to the green shift in Europe within, among other things, energy and green maritime industry. ISMAIL BURAK AKKAN / news Ole Erik Almlid, NHO director – Now we have to bring in more export companies that can in turn create even more jobs. At the same time, we must be honest that we cannot succeed on the export market without the right prerequisites at home. Good framework conditions, a reasonable tax level and enough power here at home are absolutely essential to succeed abroad. Published 20.08.2024, at 17.03
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Årdal tops the list of most export-intensive municipalities in Norway – news Vestland
