For the third time in the last five quarters, Norway had a negative balance of goods and services. This is the third time since the start of the 21st century that Norway experience a trade deficit.
Export and imports
Preliminary figures show that total export of goods and services in the second quarter of 2017 ended at NOK 277 billion, according to new figures from the statistics Balance of payments. This is a fall compared to the previous quarter, but an increase compared to the same period in 2016.
Preliminary figures show that the import value of goods and services in the second quarter of 2017 ended at NOK 284 billion, representing an increase both compared to the last quarter and the same quarter last year. The preliminary figures of exports and imports in the second quarter are more reliable for goods than for services. For more information about export and import, including price and volume considerations and seasonal adjustments, please see the quarterly national accounts.
Income and current transfers
The balance of income and current transfers in the second quarter of 2017 ended at NOK 43 billion. Unlike the balance of goods and services, which has gradually weakened, the balance of income and current transfers has experienced a persistent growth over the last years. But still the current account is more influenced by the low balance of goods and services than the high balance of income and current transfers. The preliminary estimates give a current account balance in the second quarter of 2017 of NOK 36 billion. This is well below the average current account balance in the 21st century.
Reduced financial investments
The financial accounts show reduced investments on both the asset and liability side in the first quarter of 2017. In total there was a positive net lending of NOK 29 billion. There was a huge reduction in other investments abroad, where Norwegian banks had reduced deposits abroad by NOK 133 billion. On the liability side, both portfolio and other investments declined, including Norwegian deposit-taking corporations and the central bank which reduced their short term debt and deposits respectively both to and from abroad.