Report: Export industry in western Norway hardest hit by coronavirus

The coronavirus crisis and the drop in oil prices is affecting Norwegian export industries. This is especially true for the counties of western Norway. 20,000 export jobs may be lost in Rogaland, Vestland and Møre og Romsdal counties in 2020. This is according to a report prepared by Menon Economics for Export Credit Norway.

“This is dramatic not just for the export companies, owners and employees directly affected, but also for many local communities and the country as a whole,” says Otto Søberg, CEO of Export Credit Norway.

Menon presented an analysis last week showing that over 50,000 jobs in the Norwegian export industry may be lost this year. By 2023, the drop in revenue may be more than NOK 1,000 billion.

Today the second part of Menon’s analysis is published. This calculates the consequences of the halt in exports at both county and municipal level. It shows that there are huge geographical differences. On the whole, it is western Norway that is being hardest hit, with the consequences for eastern Norway being less dramatic.

Download the report here! (in Norwegian only)

These are the five counties where the export industry is being hardest hit in relation to population:

“The crisis is having major negative consequences for the Norwegian export industry. At worst, we risk losing critical value chains, and the maritime and offshore supplier industry is particularly vulnerable. If the major engines of the system are lost, this will have consequences for hundreds of subcontractors. That is why it is important to ensure that both local jobs and national export-oriented value chains are maintained,” says Søberg.

He is concerned because the maritime and offshore supplier industry is not only important for current exports, but is also vital for the development of new export industries and the green shift in the form of floating offshore wind power, green shipping and other technological developments.

About the report

The report has been compiled by Menon Economics on behalf of Export Credit Norway. The analysis looks at the consequences of the coronavirus crisis and the drop in oil prices for four export industries (the process industry, seafood, tourism, and the maritime and offshore supplier industry). These represent 70 per cent of Norwegian exports, excluding oil and gas. Last week (26 March), as mentioned, the report examining the consequences at national level was published. Today the analyses of the consequences at county and municipal level are released.