Solid increase in total investments for 2018

The latest estimates for 2018 suggest that total investments will amount to NOK 226 billion. This is more than 10 per cent higher than the corresponding figure for 2017. The increase is driven by positive investment forecasts within the oil and gas industry as well as for electricity supply. In addition, higher investments within manufacturing also contribute positively. Further details of investments within the oil and gas industry are available in the following article 

Final investments in 2017 amounted to NOK 202 billion, measured in current value. This is 5.7 per cent lower than the final investment level for 2016. The decline is mainly due to a clear decrease within oil and gas of 9.5 per cent. The overall decline is, however, partly offset by a substantial investment growth in electricity supply.

According to seasonally-adjusted figures, quarterly final investments had the following development from the 3rd to 4th quarter of 2017:

• Oil and gas: 9.6%
• Manufacturing: 6.7%
• Electricity supply: -12.5%

Record-high investment level in electricity supply in 2017 - further growth in 2018

Final investments in electricity supply for 2017 amounted to a record high level of NOK 31.4 billion. This is 20 per cent higher than the final investments for 2016. This significant growth is particularly due to a high investment level within the distribution sector. Installation of new automatic meter readers (AMR) together with power grid upgrades explains this development. In addition, the production sector also saw an increase of 13 per cent. For the production sector, the increase is attributed to the development of several new wind farms. Implementation of new depreciation rules combined with the fact that the application deadline for electricity certifications is approaching, may explain this development.

The newest estimates for 2018 indicate a further investment growth within electricity supply. The estimate for 2018 is now 21 per cent higher than the corresponding figure for 2017. The largest contribution to the growth comes from a high level of investments within production of electricity, but investments in transmission and distribution of electricity are also expected to increase in 2018. Wind farm development is projected to grow even further in 2018, and hence explains the accelerating growth within the production sector.

Decrease in manufacturing investments in 2017

The final investments within manufacturing amounted to NOK 21.4 billion in 2017; this represents a decrease of 7.7 per cent compared with 2016. The overall investment decline in manufacturing is mainly due to a decrease within the industry grouping refined petroleum, chemicals and pharmaceutical products. In addition, lower investments in food products also contribute negatively. The decline in these industries is partly related to the fact that some major investment projects, which contributed to growth in 2016, have been completed. The overall decline in 2017 is somewhat dampened by a high investment level in rubber, plastic and mineral products. The growth is particularly due to high investments among producers of mineral products.

Strong increase within refined petroleum, chemicals and pharmaceuticals in 2018

Latest estimates for 2018 indicate a substantial increase in manufacturing investments; 12 per cent higher compared with the corresponding figure for 2017. The expected growth in 2018 is due to a high level of investments in the industry grouping refined petroleum, chemicals and pharmaceuticals of 37 per cent. This increase must be seen in conjunction with some major investment projects among some leading producers. In addition, food products as well as rubber, plastic and mineral products also contribute positively. The overall decline in 2018 is partly mitigated by a lower investment level within basic metals.

Fall in mining and quarrying in 2017, significant rise in 2018

Final investments for mining and quarrying in 2017 amounted to NOK 579 million. This represents a decline of 5.1 per cent compared to the year before. The newest estimates for 2018 suggest a significant rise.