The Norwegian economy is forecast to enjoy a modest pick-up in growth this year – fuelled largely by investments in oil.
According to the Ministry of Agriculture’s report to the ECE Timber Committee in September, investments in the petroleum industry are projected to rise by 1% but other investments are expected to fall by 2%.
Growth in traditional merchandise exports is also down – from 4% last year to 1.6% in 2002 – as Norwegian industries have lost their competitiveness.
And, while housing activity is still strong, Norway’s consumption of softwood is expected to decrease by around 4%. Export demand for softwood is good and exports are expected to rise by 10% this year, but the strength of the Norwegian krone is considered to be a threat to future profitability. Germany, the Netherlands and the UK remain Norway’s largest export markets.
Commercial roundwood removals are expected to fall this year – down 7% on last year – and imports of sawlogs, especially from Russia, are also forecast to decline. A key factor is the decreasing demand for pulpwood.
Nearly all forestry in Norway is carried out in accordance with ISO 14001 or the country’s Living Forests Standards and such forests account for 95% of the 7 million m3 harvested every year. The major buyers of sawlogs and pulpwood in Norway are only accepting roundwood from certified sources.
