In the first quarter of 2023, the value of cross-border purchases amounted to NOK 1,9 billion, according to the Norwegian Statistics Office (SSB). This is a lower amount than in the same period last year and much lower than before the COVID-19 pandemic. The high increase in food prices in Sweden may be one explanation.
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According to new border trade statistics, Norwegians spent NOK 1,9 billion on day trips abroad in January, February and March this year. This is 9,1% less than in the same period in 2022. It is worth noting that despite the travel restrictions related to the COVID-19 pandemic in January and early February last year, border trade quickly resumed after these restrictions were lifted.
“Following the lifting of travel restrictions last year, cross-border trade has grown rapidly despite being virtually absent during the pandemic. However, so far this level has not yet reached what was normal before the pandemic,” said Kristin Aasestad, senior advisor at SSB.
“Compared to the first quarter of 2019, the amount spent abroad in the same period this year was 52% lower,” added Aasestad.
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Fewer trips, but higher expenses
In total, we made 903 day trips abroad in the first quarter of this year, spending an average of NOK 000 per trip. In comparison, in the first quarter of 2 – the last one before the pandemic – we made around two million day trips, spending an average of NOK 093 per trip.
– Even though the number of trips is much smaller, we spend more money when we go to border shopping. This may be related to the strong increase in food prices in Sweden, and not necessarily to more products in the basket, said Kristin Aasestad.
Higher price increase in Sweden than in Norway
Much of the border trade on day trips abroad is for groceries, with Sweden being the most important trading destination. Data from the Swedish Statistical Office (SCB) show that from Q2019 2023 to Q29 15, the prices of food and non-alcoholic beverages in Sweden increased by XNUMX percent. In comparison, Norway had a XNUMX percent rise in food and non-alcoholic beverage prices, as shown by data from the Norwegian Consumer Price Index (KPI).
– A sign that Swedes are experiencing a significant increase in prices is the fact that many Norwegian stores located near the Swedish border report reverse border trade. Many Swedes come to Norway to buy cheaper food than in Sweden, says Kristin Aasestad.
Other reasons for fewer people crossing the border to shop may be related to the large increase fuel prices. Petrol and diesel prices increased by 41 and 43 percent respectively from the first quarter of 2019 to the first quarter of this year.
Additionally, Norwegian krone has weakened compared to the Swedish one, which may also be the reason for the smaller number of people crossing the border.
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Source: Statistics Norway
