Norway Goods Trade Balance

Norway's Goods Trade Balance measures the difference between the country's exports and imports over a given period. Economists use the Trade Balance to evaluate the structure of trade flows between countries.

Foreign trade is recorded on the basis of the physical movement of goods across the border. The Norwegian economic territory consists of mainland Norway, Svalbard, Jan Mayen, Norwegian dependencies, territorial waters, including the airspace above them, etc. Foreign trade statistics are based largely on information obtained from customs declarations. However, the area of responsibility of the Norwegian customs authorities covers only the mainland and territorial waters. Other significant trade data is additionally collected from territories by using a survey.

A trade deficit is formed when more goods and services are imported than exported. When exports exceed imports, economists point to a trade surplus. It is an indication of high production level. It also shows that the nation produces more goods and services than it can consume.

The impact of the Trade Balance on NOK quotes is ambiguous and depends on the context of business cycles and other economic indicators, such as production dynamics. For example, in economy recession conditions, countries begin to export more in order to create jobs. Conversely, if the economy grows rapidly, developed countries prefer to develop imports in order to ensure price competition. This may influence Norwegian krone quotes accordingly.