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Balance-of-payments-report-Norway - Report on balance of...

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Report on balance of payments in NorwayNorway’s economy is dependent on exporting oil and gas to other countries. The currentaccount has been at a surplus over the past years due to the high levels of export. Theexports created 40% higher profits than the money spent on imports last year, so thesurplus has decreased the past two years due to low oil prices. Low oil price hascaused the exchange rate of NOK to depreciate.The current account is regularly based of exports of raw materials, Norway mostlyimports finished goods. The surplus occurs as there is proportionally more credit fromexports than there is debit resulting from importing goods and services.
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Term
Fall
Professor
Tony Yang
Tags
English, International Economics, International Trade, current account, low oil price

Unformatted text preview: exports than there is debit resulting from importing goods and services. The large current account surplus might state that the export is too high from a country, where domestic needs are not met. But since imports are being demanded and supplied, indicates the needs from the population. In order to correct the large surplus, most of the surplus is placed in the sovereign wealth fund. This backs up the financial account, and the management of this fund is what helps to balance the current account....
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