The Norwegian market
The Norwegian economic system is an example of a mixed economy. It consists of the characteristics of both a free market economy and a prescriptive economy. Both the state and the private sector play a significant role in the functioning of the economic system of the Kingdom of Norway. This makes it possible to combine economic efficiency with meeting the needs of society, which eliminates misunderstandings, and, as a result, contributes to improving living standards.
Foreign trade has an impact on the economic growth of a country and, consequently, on the quality of life of its inhabitants. Thanks to the oil and natural gas deposits discovered in 1967 in the North Sea and Norwegian Sea shelf, the country has become a leading European producer of this raw material. What is more, access to the two seas mentioned above and to the Barents Sea has enabled Norway to take the world’s leading position in fisheries. Statistics from the Observatory of Economic Complexity (OEC) show that in 2018, the value of exported fish amounted to USD 11.9 billion, which allowed Norway to take second place in global exports. Their main recipients were European Union countries, among which Poland was at the forefront.
The political situation between Norway and Poland
Over the last 15 years, trade relations between Norway and Poland have strengthened and have had a positive impact on the volume of exports. The year of Poland’s accession to the European Union is considered a breakthrough period for these countries. Both of these economies began cooperation based on the Agreement on the European Economic Area (EEA) and the Agreement between the European Economic Community (EEC) and the Kingdom of Norway on free trade. Besides, bilateral agreements concerning the avoidance of double taxation and the prevention of tax evasion in the area of income taxes have not expired. These signed agreements have a positive impact on both economies, as the Polish-Norwegian trade turnover is constantly increasing. According to the Central Statistical Office, their balance has increased from USD 2.47 billion in 2004 to just over USD 7.05 billion in 2013. And in 2018 it amounted to USD 9.52 billion.
Norwegian exports and Polish imports
In 2018, Norway exported USD 127 billion worth of goods from its country, making it 33rd in the world. The most frequently exported goods were natural gas, oil, metals, and fish, with Germany, the United Kingdom, and the Netherlands being its largest customers. Exports to Poland, on the other hand, represented 2.38% of Norway’s foreign trade, or USD 3.03 billion. The main products exported are fish (both fresh and frozen), crude oil, passenger and cargo ships, and aluminum. For comparison, according to data from 2018, Poland was ranked 18th in imports worldwide, importing products with a total value of USD 278 billion. Its dynamic development of foreign trade as evidenced by an increase in imports by 70.5 billion USD in 2013-2018, from 207 billion USD in 2013 to 278 billion USD in 2018. And invariably for years, the main products imported from Norway are oil, cars, and parts. Summarising data from the OEC indicates that the Kingdom of Norway accounts for 1.09% of Polish imports.
Continuously evolving sectors
For many years, foreign trade between Norway and Poland has remained stable, with slight fluctuations. Among Polish trade partners, Norway is ranked 20th in imports. These two economies have created a strong trade link, and the export Norway industries, which are constantly strengthening this:
- Fish – Poland is the main contractor of the fishing industry in Norway. It accounts for 15% of all fish imports. Despite the epidemiological situation and the general hesitation of the global economy, the export of fish (cod and salmon) to Poland has been constantly growing. This country has become the main supplier to Poland because the quality that the Norwegians are betting on is an important aspect.
- Minerals – Poland accounts for about 2% of Norway’s exports in this sector. What can be understood by the mineral industry? It consists of the following products: slag, cement, salt as well as oil, and natural gas.
- Metals – the metals sector plays a significant role in the exchange between Norway and Poland. Norway can be proud of having huge deposits of precious metals because apart from oil, natural gas, and fish, it also has reserves of ferrous and non-ferrous metal ores, which it exports to Poland.
Trade relations between Poland and Norway play an important role in the functioning of both these economies. Poland is one of the 143 countries that receive fish from Norway, but of all the countries, it is Poland that is the leader of their imports. Norway, on the other hand, is the main client of the ship and shipbuilding and engineering industries in Poland. To sum up, the cooperation between the two countries is becoming more and more important every year. Reed more about how to start a company in Poland?