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10108
Slower growth in the Norwegian economy
statistikk
2008-08-21T10:00:00.000Z
National accounts and business cycles
en
knr, National accounts, gross domestic product, GDP, value added, gross product by industry, gross investments, household consumption, consumption in non-profit organisations, public consumption, material production, service production, export, import, wage costs, employment, man-hours, oil investments, mainland NorwayNational accounts , National accounts and business cycles
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National accounts, June 2008

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Slower growth in the Norwegian economy

The economic growth is levelling out. From the last six months of 2007 to the first six months 2008, the growth in GDP for Mainland Norway was as low as 1.6 per cent, calculated as an annual growth rate. The growth was stronger in the second quarter than in the first.

Gross fixed capital formation and consumption. Seasonally adjusted. Volume indices. 2005=100

Gross domestic product. Seasonally adjusted. Volume indices. 2005=100

The figures from the second quarter and revised figures from the first quarter, clearly shows that the economic growth is levelling out. Gross domestic product (GDP) for Mainland Norway rose by 1 per cent from the first to the second quarter, while the figures show an unchanged level from the fourth quarter 2007 to the first quarter 2008. The growth from the last six months of 2007 to the first six months of 2008 was 0.8 per cent, which is considerably weaker than we have observed the last years.

The gross product in the manufacturing industry went up by 2 per cent from the first to the second quarter. Growth in engineering industry contributed the most to the growth, but also industry building ships and oil drilling platforms had a clear growth. The last few years, the gross product in wood and wood product industry has declined. This trend continued in the second quarter.

Electricity producing industry experienced a strong growth in the second quarter. In the construction industry the economic turn came already in the second quarter of 2007. The growth has been weak every quarter since then.

After weak growth from the fourth quarter last year to the first quarter this year, the service industries experienced higher growth in the second quarter. The growth in business services, which has been strong for several years, stagnated in the second quarter.

The output in the extraction of oil and gas on the Norwegian Shelf decreased by more than 1 per cent in the second quarter. Hence, the growth total GDP was lower than the growth in GDP for Mainland Norway.

Gross domestic product 2nd quarter 2007 to 2nd quarter 2008. Percentage change in volume from the previous period (seasonally adjusted)
 
  2006 2007 2nd quarter 2007 3rd quarter 2007 4th quarter 2007 1st quarter 2008 2nd quarter 2008
 
Gross domestic product (GDP) 2.5 3.7 0.6 1.6 1.0 0.0 0.6
GDP Mainland-Norway 4.8 6.2 1.4 1.9 0.8 -0.1 1.0
Petroleum activities and ocean transport -4.1 -4.6 -2.5 0.5 1.8 0.4 -0.7
Final domestic use of goods and services 5.5 5.8 2.6 1.2 3.2 -0.8 0.9
Final consumption exp. of households 4.6 6.4 1.3 0.9 0.9 0.0 0.3
Final consumption exp. of general government 2.9 3.6 1.1 1.4 0.7 0.7 1.0
Gross fixed capital formation 7.3 9.3 4.1 4.8 4.9 -2.7 -0.1
Exports 0.4 2.8 -2.3 3.0 -0.4 1.3 -0.5
Imports 8.1 8.7 2.2 2.5 5.4 -0.7 0.1
               
Total employed 3.4 4.0 1.3 1.0 1.0 0.7 0.8
Total man-hours worked 2.6 4.2 1.3 0.8 1.2 0.7 1.0
 

Number of employees continues to grow

The turn in the economy has yet to be seen in the labour market. The number of employees rose by 0.8 per cent in the second quarter from the previous quarter. The increase was greatest in service industries and manufacturing industry.

The number of employees was 90 000 above the level in the same quarter the previous year.

Small increase in consumption

After several years with strong growth in household consumption, the figures show slow growth in the first six months of this year. Both consumption of goods and services are levelling out.

It is still growth in household consumption of clothes and groceries, but household purchase of cars has declined the first six months of this year. Commodity consumption without purchase of cars rose by 1.2 per cent from the first to the second quarter.

About unchanged investments

Gross capital formation in oil and gas extraction increased by almost 3 per cent in the second quarter, and is now on a very high level.

The manufacturing industry also experienced growth, and the gross capital formation rose by 7 per cent in the second quarter. It was especially strong growth in manufacturing basic chemicals.

In the service industries the gross capital formation decreased in the second quarter, mostly due to lower construction activity in industrial buildings. Building activity in dwellings, as well as investments in housing also went down.

Exports down, imports unchanged

Imports of goods and services were about unchanged in the second quarter compared to the first quarter. It was a decrease in imports of traditional goods, but this decrease was offset by an increase in imports of services.

The total export decreased by 0.5 per cent in the second quarter. This decrease was caused by lower export of oil. The export of traditional goods increased, and it was products from the engineering industry that contributed the most. At the same time it was a decrease in exports of services.

GDP figures, seasonally adjusted
 
  Percentage change in volume from the previous quarter
  2007 2008
  1st quarter 2nd quarter 3nd quarter 4th quarter 1st quarter 2nd quarter
 
Sweden 0.7 0.9 0.4 0.5 0.1 0.0
Denmark 1.5 -1.5 1.7 -0.2 -0.6 ..
Finland 1.6 1.0 0.4 1.0 0.7 ..
Germany 0.4 0.4 0.6 0.3 1.3 -0.5
France 0.6 0.6 0.7 0.4 0.4 -0.3
UK 0.8 0.9 0.6 0.6 0.3 0.2
USA 0.0 1.2 1.2 0.0 0.2 0.5
Norway 1.4 0.6 1.6 1.0 0.0 0.6
 

Revisions

Due to the incorporation of new statistics there have been small revisions in the unadjusted figures since the last release.

 

GDP total has remained unchanged though there have been some revisions in its components. Oil and gas extraction have, together with ocean transport, been revised upwards. But this revision was offset by a downward revision of GDP in Mainland Norway

 

Production of goods has been revised upwards due to new information on the primary industry, while the incorporation of turnover indexes for 1st quarter 2008 has led to an adjustment downward for service activities.

 

Gross fixed capital formation is revised upwards, mainly due to incorporation of new information on the gross capital formation in oil and gas extraction.

 

Both export and import have been revised upwards, due to new information on export and import of ships, oil platforms and services.

 

Seasonally adjusted GDP has been slightly revised downwards. There have been revisions downward in most of the industries since the last release. The household consumption has also been adjusted downwards.

 

The unadjusted figures 2007 have not been revised since the last release.
Revised figures of final expenditure and gross domestic product. Percentage change in volume
 
  1st quarter 2008
  Seasonally adjusted figures Unadjusted figures
  Percentage change in volume from the previous period Percentage change in volume from the same period in the previous year
  New result Former result New result Former result
 
Gross domestic product (GDP) 0.0 0.2 0.9 0.9
GDP Mainland Norway -0.1 0.2 1.0 1.1
Household final consumtion expenditure 0.0 0.3 2.1 2.2
Final consumption of general government 0.7 0.7 0.4 0.2
Gross fixed capital formation -2.7 -4.8 11.4 7.8
Exports 1.3 1.0 0.6 0.5
Imports -0.7 -2.8 7.0 6.5
 

Tables

Published tables