In April, the Norwegian-German Chamber of Commerce conducted its annual business cycle survey for companies in the Norwegian-German business environment. More than half of the companies assessed their current situation as good and expected positive business development in the next twelve months. However, the companies consider the general conditions for business in Norway to be worse than last year. The economic survey is carried out every year through the German Chamber of Industry and Commerce’s World Business Outlook (DIHK).
More than 50% of the companies rated their current situation as good and 50% expected a positive company development. In last year’s survey, 56% and 45% respectively gave the same answers. 32% stated the economic development in Norway as good (2023: 25%), and 31% stated the development of investments as good, the same number as last year. “We can describe these assessments as cautious optimism,” says Michael Kern, CEO of the Norwegian-German Chamber of Commerce. “The situation in and the influences of world politics were assessed in the survey’s analyzes of challenges. Again this year, the good conditions for digitization make Norway an attractive location for companies”.
Business sees major challenges in the conditions in Norway
On a scale from one to seven (1: very bad, 7: very good), Norway again scores the best this year in the areas of “general conditions for digitalisation” (5) and “level of education of employees” (4.6), but at the same time loses respectively 0.7 and 0.9 points in these areas compared to 2023. However, it is the assessment of economic and political stability in Norway that has fallen the most from last year’s (5.2) to this year’s (4.1) survey. In total, Norway scores worse in 2024 on nine out of ten criteria compared to the previous year.
The biggest challenges are demand and access to qualified labour
When asked what are among the company’s biggest challenges, 51% state demand and 36% access to qualified labour. Although the number of companies citing access to qualified labor as a challenge is still at a high level, it has decreased. In 2022, 54% and in 2023 44% stated it as the biggest challenge. Furthermore, the economic and political framework conditions are seen as a challenge by 33% of the companies. Last year it was significantly higher at 54%. In this year’s survey, disruptions in the supply chain are almost no longer seen as a challenge by 11% (2023: 39%). In contrast, the exchange rate is considered a significantly greater risk this year than last year (2024: 28%, 2023: 19%)
Cautious optimism for world markets
The Norwegian-German Chamber of Commerce’s economic survey is part of the AHK World Business Outlook, the global survey of the German Chamber of Industry and Commerce network. Globally, the business situation of the nearly 4,300 participants in the survey has barely improved compared to last year. The view of the business situation is below the level from 2023, and just below the long-term average. Just under a third of the companies expect an economic upswing in their country during the year. Expectations for own business have only increased minimally. Correspondingly, companies hold back their own investments. There is still skepticism and uncertainty in the world market: although low inflation and a hope of an interest rate cut improve economic expectations, the ongoing geopolitical tensions and trade conflicts put a damper on optimism.
All the results from the business cycle survey can be found here.
Tags: Cautious optimism business development major challenges due conditions Norway
