Norway attracts a number of our clients as Western Europe's largest oil producer, and the world's second-largest natural gas exporter. In terms of GDP per capita, Norway is one of the wealthiest countries in the world. The country has a long and solid tradition of democratic governance, with emphasis on consensus-forming and negotiated solutions to political differences.
We keep our clients informed of the latest market moves and political developments as part of our 'top-down' and 'bottom-up' perspective. Clients also benefit from in-depth analysis on eight of Norway’s most important industries. We provide interactive data and forecasting alongside detailed and risk-assessed analysis from our results-proven research teams. We aim to keep you ahead of the curve, so you can do business with ease in Norway.
Norway Country Risk
A sharp slowdown in hydrocarbons sector investment amid a collapse in global oil prices will weigh on Norwegian GDP growth between 2016-18.
The Norwegian government will continue to expand fiscal policy in order to stimulate demand in the short run and to lay the structural foundations for stronger non-hydrocarbons growth over the longer run.
The residential housing market has been a major contributor to overall real GDP growth for most of the past decade, but is set to cool over the next few years.
We envisage broad political continuity to the next election in 2017, with the Conservative-Progress minority coalition government achieving modest progress on its reform agenda.
Key Forecast Changes
Norway Industry Coverage (8)
BMI View: Weak consumer spending will provide headwinds to growth in the passenger vehicle market in 2016. While a strong infrastructure pipeline will drive demand for commercial vehicles amid a slowdown in the hydrocarbons sector
|Passenger Car and Commercial Vehicle Sales|
|Vehicle Sales (2014-2020)|
|f = BMI forecast. Source: OFV, BMI|
Low consumer confidence, tight credit conditions and a weak labour market will drag on growth in the...
Food & Drink
Norway Food & Drink
BMI View: A consumer base with some of the strongest purchasing power in the world, combined with a favourable business and regulatory environment, will continue to be an attractive characteristic for food and drink companies operating in Scandinavia. That said, market concentration and a weak demographic outlook will limit growth for new entrants.
Latest Updates & Industry Developments
Throughout our forecast period to 2020, household spending will experience healthy growth in the Nordics, given...
BMI View: Norway is at the beginning of transitioning from a hydrocarbons dependent economy, which means the value of its construction sector is taking a beating also. On the upside, the construction sector is supported by a solid major project pipeline, government commitment to infrastructure spending and a strong investment environment. However, a long-term picture of slowing hydrocarbons revenues and a transitioning economy will constrain construction industry performance. Sector growth will average 2.6% annually between 2016 and 2025.
Construction industry growth will be firm against economic headwinds in the near term, however, after 2018 growth will moderate into a pattern of muted returns as the country transitions from a hydrocarbons upstream driven investment base.
Over the next decade to...
Norway Medical Devices
BMI Industry View : The Norwegian medical device market is limited by the size of the population, but enjoys above average per capita spending of USD300. The market is projected to grow at a US dollar CAGR of 3.9% to 2019 with the ageing population the main growth driver. The market will continue to be import-led with much of domestic production geared to the export market.
Headline Industry Forecasts
We forecast that the Norwegian medical device market will grow at a 2014-2019 CAGR of 3.9%, from USD1,529.2mn in 2014 to USD1,853.1mn in 2019. Growth will range from 2.5% for patient aids up to 5.1% for other medical devices. This will make Norway the second fastest growing market in Western Europe,...
Oil & Gas
Norway Oil & Gas
BMI View: New field developments and improved recovery will stabilise oil production over the 2016-2019 period. Weaker oil prices will curtail investment, although the long-term impact will be masked by the vast Johan Sverdrup project starting in 2019. Gas production will improve as lower prices support European demand.
Pharmaceuticals & Healthcare
Norway Pharmaceuticals & Healthcare
BMI View: Norway's 2016 fiscal stimulus is expected to be positive in terms of supporting the pharmaceutical and healthcare sector growth trajectory. Over the long term, policies aimed at promoting economic diversification away from energy exports are set to benefit the biotech and pharmaceutical sector development, which will remain a key policy priority. A growing and ageing population and high per capita expenditure on medicine will ensure renewed opportunities for drugmakers over the forecast period despite the small market size.
Headline Expenditure Projections
Pharmaceuticals: NOK21.70bn (USD3.48bn) in 2014 to NOK21.98bn (USD2.69bn) in 2015; +1.28% in local currency terms and -22.9% in US dollar terms. Forecast broadly in line with last quarter...
BMI View: The maturity of the Norwegian power market, coupled with surplus power generation, means overall generation growth will remain limited. Hydropower will remain the dominant source of power at over 94% of total generation, with ambitions to increase export capacity, driving the growth of non-hydropower renewable electricity up until 2020.
BMI View: The Norwegian mobile market has effectively become a two-player market, despite the conditions given to ICE as part of the TeliaSonera/Tele2 deal. Telenor continues to be the dominant player across all telecoms sectors (fixed and mobile), and its greater focus on fibre services recently will help continue its leadership. As the market will not compete on price, more innovative services should appear, benefiting consumers, with Telenor's scale giving it an advantage in future drivers, such as connected objects. Its main risk is regulation, as its losses in the fixed voice segment are due to its inability to bundle that service.
Latest Updates & Industry Developments
Norway's mobile market is saturated, having remained stable between 5.8mn and 5.9mn subscribers...