• GDP: US$238 billion (2004).
• Main exports: Crude oil, natural gas, refined petroleum products, machinery and transport equipment and manufactured goods.
• Main imports: Machinery and transport equipment, manufactured goods and chemical and related products.
• Main trade partners: UK, Germany, The Netherlands, France and Sweden.

The Norwegian economy is dominated by its oil and gas industry, which accounts for nearly 20 per cent of GDP and 60 per cent of export earnings. There is little cultivable land in Norway, however many farmers breed livestock, combining this with forestry to supply Norway's numerous sawmills. Consequently, wood products and paper are both thriving industries. Offshore fishing has been in decline for some time, although a large number of fish farms have been established, making Norway by far the world's largest supplier of salmon. Heavy engineering industries, principally shipbuilding and machinery, have also declined (although Norway retains a large merchant fleet). Nonetheless, the country has sustained its economic prosperity outside the European Union (see below) through development of an exceptionally strong energy sector. As well as oil and gas, Norway has abundant hydroelectric resources: the development of these has allowed much-reduced overheads for heavy industries such as aluminium production while freeing oil and gas products for export. Norway has been a major oil and gas exporter since the mid-1970s, after discovering large deposits of both in the North Sea. Proven oil reserves are around 11 billion barrels (one-tenth of Saudi reserves and 1 per cent of the world total). Much of the income is invested in a fund, now worth over US$40 billion, for such time (perhaps 15-20 years) as the oil and gas last. The country also has deposits of various iron ores plus copper, lead and zinc, which feed the country's metallurgical and chemical industries. Recent years have seen the emergence of advanced technological industries.
The UK, Germany and Sweden are Norway's principal trading partners. Norway is a member of the European Free Trade Association (EFTA) and hence the so-called 'European Economic Area', which is an amalgam of EU and EFTA members united in a free-trade zone and created in 1991. Concern about the possible effects on the fishing and farming industries lay behind the Norwegians' decision – registered in two referendums, in 1973 and 1994 – to reject EU membership. Nonetheless, with the exception of these two industries, Norway enjoys a wholly liberalised trade regime with EU members, and conducts 70 per cent of its trade with the EU.

Businesspeople are expected to dress smartly. Prior appointments are necessary. Norwegian businesspeople tend to be reserved and formal. English is widely spoken. Punctuality is essential. Calling cards are common. The best months for business visits are February to May and October to December. Office hours: Mon-Fri 0800-1600.

Innovation Norway
PO Box 448 Sentrum, 0104 Oslo, Norway
Tel: 2200 2500.
Website: www.ntc.no

Innovation Norway in the UK Office
5th Floor, Charles House, 5 Lower Regent Street, London SW1Y 4LR, UK
Tel: (020) 7389 8800.
Website: www.norway.org.uk