Since the start of the pandemic, Norwegian exports of goods have more than doubled. The volume of oil exports is the highest since October 2008.
The future Prime Minister of Norway said in the election campaign that “Norwegian exports have fallen like a rock in recent years”. Now the choice has been decided and the stone has risen to new heights.
Since the start of the pandemic in April last year, Norwegian exports of goods have more than doubled from almost NOK 52 billion to NOK 116 billion in August.
Imports have risen only slightly, bringing the gain in trade in goods to almost NKr 43 billion in August. This is the fifth highest profit in a single month, based on Norway Statistics (SSB).
– The environment in the business world is quite good and it is getting better and better. Around the world, we are seeing a strong rebound in production, prices and trade in goods. Norwegian export companies benefit from this, says Chief Economist Øystein Dørum of the Confederation of Norwegian Companies (NHO).
In the first eight months of the year, goods exports increased from NKr 500 billion to NKr 750 billion, compared to the same months last year. But then the starting point is a 2020 where the world economy experienced its worst recession after the war.
Largest oil volume since 2008
It is the export of oil and gas that bears much of the burden. After an election campaign with heated discussions about the future of oil, exports in August ended at just over 70 billion Norwegian crowns. This is more than half of the total export value of goods in August.
Both prices and volume have increased:
- Gas exports in crowns have more than quintupled since August last year. Gasoline prices have gone from “particularly low” to all-time highs. The volume sold abroad has also increased.
- The price of oil has risen from 392 crowns per. barrels in August last year to just over 600 kroner in August this year. The volume of oil exported in August was the highest since October 2008.
- However, the value of crude oil exports ends well below the skyrocketing gas exports.
New oil fields deliver
The recovery of new oil fields is beginning to be reflected in the statistics. Statistics Norway writes that Johan Sverdrup’s field capacity was increased for the third time in May. In August of this year also gas and oil from the Martin Linge field entered the statistics.
On gas, Statistics Norway writes: “The high price is explained by several factors, such as the economic recovery after the pandemic, the significant decline in German wind power production and lower gas exports from Russia.”
NHO is looking forward to it.
– Once Norway is a major producer of oil and gas, it is absolutely brilliant that we can sell it at high prices, says chief economist Dørum.
Third highest export on the continent
Within the fjords and mountains of the continent, things are also going well. The continent’s exports amounted to almost NOK 45 billion in August. This is the third highest export value in a single month.
Values are a combination of price and volume.
– The growth of the continent’s goods exports so far this year is fairly evenly distributed between rising prices and rising volumes, says Dørum.
Aluminum and fish are two important exports. According to Statistics Norway, the price of aluminum is “historically high”. Also the quantity exported is higher than last year.
Tight in aluminum
Hydro is the largest aluminum producer in Europe.
– Prices are at their highest level in more than ten years. This is primarily due to increased activity after the pandemic, combined with the fact that transportation bottlenecks still exist due to the pandemic. Therefore, there are problems meeting the increased demand, says chief information officer Halvor Molland.
This summer, Hydro started up one of two production lines at the Husnes plant in Sunnhordland.
– In this sense, we achieved good price growth with another 95,000 tons of annual production, says Molland.
Hydro produces approximately 1 million tonnes of aluminum in Norway and consequently abroad.
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Second largest salmon export
The export value of salmon also set almost a record in August. With salmon exports worth NOK 5.4 billion, it was the second highest month on record. It is above all the growth in volume that makes it almost a record.
“Demand has increased because more hotels and restaurants have been reopened”, Statistics Norway writes as an explanation.
All export values are affected by the krona exchange rate. Measured by the exchange rates of currencies in the countries against which the Norwegian industry competes, the Norwegian krone has been roughly unchanged over the past year.
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