11 per cent increase in net assets

Published:

At the end of the second quarter of 2017, general government net financial assets are estimated at NOK 9.6 trillion. This equals an increase of 11 per cent in the last four quarters.

General government gross financial assets are estimated at nearly NOK 11 trillion at the end of the second quarter of 2017. Net financial assets, calculated by subtracting debt from assets, have increased by NOK 954 billion in the last four quarters. Eighty-six per cent of this increase stems from revaluations.

Figure 1. Net assets by financial instrument
Figure 1. Net assets by financial instrument
Other accounts Shares and other equity Loans and bonds
Q1-1997 19.6 27.4 -1.0
Q2-1997 18.7 29.2 2.0
Q3-1997 20.4 28.9 1.2
Q4-1997 17.3 28.6 6.2
Q1-1998 17.1 32.3 4.9
Q2-1998 17.3 34.2 4.9
Q3 1998 15.0 32.6 5.9
Q4-1998 13.7 35.6 8.2
Q1-1999 11.1 36.6 9.6
Q2-1999 12.2 36.6 8.9
Q3-1999 12.2 37.3 8.8
Q4-1999 14.4 38.2 8.4
Q1-2000 13.5 36.9 11.2
Q2-2000 13.6 37.1 12.3
Q3-2000 15.7 37.4 12.7
Q4-2000 19.0 40.4 11.3
Q1-2001 19.3 38.5 13.6
Q2-2001 18.3 47.8 19.3
Q3-2001 17.7 45.5 19.4
Q4-2001 15.8 50.1 21.3
Q1-2002 15.1 52.8 22.5
Q2-2002 13.8 47.7 24.1
Q3-2002 13.5 43.9 23.7
Q4-2002 13.5 45.5 22.7
Q1-2003 13.8 46.2 22.8
Q2-2003 13.4 52.8 25.5
Q3-2003 15.6 52.9 24.0
Q4-2003 16.3 56.7 23.3
Q1-2004 15.9 59.8 25.8
Q2-2004 16.5 59.0 27.6
Q3-2004 15.1 58.7 29.8
Q4-2004 14.7 58.6 31.1
Q1-2005 15.3 60.3 32.6
Q2-2005 15.1 63.6 34.7
Q3-2005 14.5 68.1 36.3
Q4-2005 16.6 69.1 36.6
Q1-2006 14.8 72.5 38.8
Q2-2006 15.9 68.7 39.0
Q3-2006 15.3 70.3 44.3
Q4-2006 17.4 75.1 42.8
Q1-2007 15.0 75.6 47.0
Q2-2007 16.6 79.9 46.8
Q3-2007 16.8 80.4 42.8
Q4-2007 16.2 82.4 41.0
Q1-2008 15.2 75.3 39.5
Q2-2008 16.8 79.9 35.5
Q3-2008 16.8 73.8 33.4
Q4-2008 13.0 70.8 40.2
Q1-2009 12.8 69.0 34.8
Q2 2009 12.4 87.9 36.3
Q3-2009 12.8 97.7 35.4
Q4-2009 14.0 105.1 35.2
Q1-2010 15.2 106.8 36.0
Q2-2010 16.5 100.9 38.8
Q3-2010 16.3 105.0 39.0
Q4-2010 14.3 110.6 38.9
Q1-2011 14.3 109.8 39.5
Q2-2011 15.3 105.0 40.7
Q3-2011 15.3 94.8 42.4
Q4-2011 13.2 104.4 42.3
Q1-2012 14.9 109.7 39.6
Q2-2012 15.8 105.2 42.5
Q3-2012 14.1 110.3 43.8
Q4-2012 15.3 111.6 41.9
Q1-2013 15.1 123.7 44.6
Q2-2013 14.9 127.0 46.9
Q3-2013 13.2 135.0 49.8
Q4-2013 12.8 139.4 55.0
Q1-2014 13.6 138.9 55.6
Q2-2014 13.6 147.9 60.7
Q3-2014 12.8 148.0 61.0
Q4-2014 13.7 166.3 68.9
Q1-2015 14.3 184.8 72.7
Q2-2015 13.5 182.3 70.9
Q3-2015 12.4 176.8 78.8
Q4 2015 13.2 191.7 79.9
Q1-2016 14.9 180.2 78.3
Q2-2016 15.6 182.9 79.9
Q3-2016 16.0 184.2 76.8
Q4-2016 16.0 197.7 75.8
Q1-2017 17.0 204.0 74.2
Q2-2017 16.9 206.9 74.3

The Petroleum Fund largely accounts for the asset increase

Central government assets have increased by NOK 998 billion in the last four quarters. NOK 843 billion of this increase is attributed to the increase in the market value of the Government Pension Fund Global, which is invested globally in international equities, fixed income and real estate. Furthermore, the Government Pension Fund Norway has increased its market value by NOK 21 billion. The asset holdings of the two Pension Funds together account for NOK 8.2 trillion of the total central government holdings of NOK 10.6 trillion.

Increased local government debt

Net local government debt has increased in recent years due to a high level of investment. By the close of the second quarter of 2017, debt exceeded assets by NOK 120 billion. NOK 100 billion of the negative balance has been generated in the last ten years. Net debt growth slowed somewhat in 2015 and 2016 – partly as a result of increased local government tax receipts.

Increased gross debt

General government gross debt, as measured by the Maastricht criteria, has increased by nearly 6 per cent since the second quarter of last year. The debt now totals NOK 1 150 billion, which equals 36 per cent of GDP of the last four quarters. Despite having increased in the past few years, the debt-to-GDP ratio is still lower than in the years between 2009 and 2011. In this period this share was above 40 per cent.

Figure 2. Change in net financial assets in general government. Sum last four quarters
Figure 2. Change in net financial assets in general government. Sum last four quarters
Net revaluations Net lending
Q1-1997 2.09 6.69
Q2-1997 3.93 6.85
Q3-1997 4.05 7.70
Q4-1997 3.58 7.71
Q1-1998 4.41 7.36
Q2-1998 2.35 6.52
Q3  1998 -0.25 4.90
Q4-1998 1.99 4.42
Q1-1999 1.26 2.32
Q2-1999 0.70 2.01
Q3-1999 4.69 2.60
Q4-1999 3.56 4.60
Q1-2000 3.92 7.65
Q2-2000 3.46 10.43
Q3-2000 4.98 11.98
Q4-2000 5.45 14.08
Q1-2001 2.47 15.48
Q2-2001 11.72 17.66
Q3-2001 2.34 19.59
Q4-2001 3.71 15.33
Q1-2002 5.28 13.80
Q2-2002 -12.74 11.73
Q3-2002 -11.76 8.78
Q4-2002 -13.92 8.17
Q1-2003 -12.74 7.98
Q2-2003 2.69 5.43
Q3-2003 7.98 6.13
Q4-2003 11.61 5.98
Q1-2004 16.07 5.28
Q2-2004 8.02 8.94
Q3-2004 8.83 9.02
Q4-2004 5.26 11.61
Q1-2005 4.09 11.97
Q2-2005 9.20 11.24
Q3-2005 13.24 12.79
Q4-2005 14.90 13.82
Q1-2006 15.78 15.71
Q2-2006 6.47 17.11
Q3-2006 6.20 18.15
Q4-2006 7.94 17.56
Q1-2007 3.29 17.29
Q2-2007 9.35 18.02
Q3-2007 -0.60 17.40
Q4-2007 -4.99 17.21
Q1-2008 -16.04 18.52
Q2-2008 -15.93 18.54
Q3-2008 -19.13 18.95
Q4-2008 -20.43 18.55
Q1-2009 -21.09 16.38
Q2  2009 -9.97 15.05
Q3-2009 4.51 11.49
Q4-2009 11.03 10.21
Q1-2010 25.78 10.19
Q2-2010 9.71 9.84
Q3-2010 7.19 11.44
Q4-2010 8.23 10.97
Q1-2011 4.81 11.42
Q2-2011 2.81 12.12
Q3-2011 -7.98 12.40
Q4-2011 -5.08 12.94
Q1-2012 0.11 13.05
Q2-2012 1.38 13.81
Q3-2012 12.16 13.68
Q4-2012 4.23 13.98
Q1-2013 10.84 13.39
Q2-2013 16.83 12.36
Q3-2013 23.14 11.55
Q4-2013 32.87 11.44
Q1-2014 22.85 11.51
Q2-2014 31.54 10.64
Q3-2014 21.14 9.92
Q4-2014 37.52 8.79
Q1-2015 56.80 7.44
Q2-2015 38.27 6.63
Q3-2015 39.31 6.49
Q4  2015 27.52 6.21
Q1-2016 -8.00 6.41
Q2-2016 1.99 5.69
Q3-2016 -1.08 5.04
Q4-2016 0.73 3.70
Q1-2017 25.83 3.82
Q2-2017 25.57 4.15

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