Financial and non-financial accounts (discontinued), 2005-2009

General government owns a high proportion of total savings in Norway. In 2007 and 2008 these amounted to over 70 per cent of Norway’s total savings, only to fall to 56 per cent in 2009. This decline was primarily due to less wealth and tax revenues received by the government from oil and gas operations. Production income from the petroleum industry weakened as a result of a sharp fall in the price of oil and gas from 2008, while oil production itself decreased throughout the whole three-year period.

The general government’s savings have mainly been invested in financial assets. From 2007 to 2009 investments on average were 91 per cent of net lending. High net lending from1996 has built up substantial public net financial assets abroad, largely through the Government Pension Fund - Global.

General government’s net financial assets were severely affected by the turmoil in the international markets in 2007 and the financial crisis that began in mid-September 2008. During the autumn of 2008, market and commodity prices more than halved. At the end of 2007 net financial assets were NOK 3 239 billion. These fell by 2 per cent to NOK 3 177 billion at the end of 2008, despite the fact that NOK 480 billion was net invested in financial assets this year. The financial net wealth had thus lessened its value by NOK 542 billion due to the fall in securities markets, a decline that was larger than net investments in the period.

During 2009, net financial assets grew by 16 per cent to NOK 3 690 billion, although net investments of NOK 253 billion were relatively moderate compared to their respective levels in the two previous years. A favourable development in the securities markets ensured that the value of assets rose further by NOK 260 billion.

Falling exchange rate movements cut general government’s net financial assets by NOK 647 billion in 2007 and 2008. A rise in exchange rates in 2009 made up 40 per cent of this loss. The general government’s portfolio of market-listed securities accounted for 67 per cent of the sector's financial assets at the end of 2009 compared to 58 per cent in 2007.