This is an archived release.
Strong economic growth continues
The strong growth in the Norwegian economy continued into the first quarter of 2007. Gross domestic product (GDP) for mainland Norway rose by 1.4 per cent from the fourth quarter of 2006. The growth was followed by a strong growth in the number of employees and an increase in household consumption.
Most industries experienced strong growth. The manufacturing industry rose by 0.5 per cent, and private services grew by 2.1 per cent. Construction rose by 3.2 per cent, and production of electricity grew by 7.2 per cent. The high growth in the production of electricity must be seen in connection with the low level last quarter.
Oil and gas extraction had a lower growth in production than mainland Norway. Hence, the growth in total GDP for Norway was somewhat lower than for the mainland economy.
|Gross domestic product 1st quarter 2006 to 1st quarter 2007.
Percentage change in volume from the previous period (seasonally adjusted)
|2005||2006||1st quarter 2006||2nd quarter 2006||3rd quarter 2006||4th quarter 2006||1st quarter 2007|
|Gross domestic product (GDP)||2.7||2.8||0.8||0.1||1.7||0.3||0.7|
|Petroleum activities and ocean transport||-3.5||-3.8||0.3||-2.7||2.0||-2.6||-2.2|
|Final domestic use of goods and services||5.6||5.2||0.1||1.8||1.4||0.7||-0.1|
|Final consumption exp. of households||3.2||4.3||1.7||1.6||0.9||1.0||2.9|
|Final consumption exp. of general government||1.8||3.3||2.0||0.6||0.7||0.6||1.3|
|Gross fixed capital formation||11.2||7.4||-9.2||8.3||-0.3||2.4||-0.7|
|Total man-hours worked||1.3||2.1||0.9||0.9||0.7||0.8||0.6|
Increase in consumption
Household final consumption expenditure grew by 2.9 per cent in first quarter. The consumption of goods was 4.2 per cent higher than in the last quarter, and the consumption of services rose by 0.7 per cent. The large increase in consumption is partly explained by a strong growth in purchases of cars. Some of this increase can be explained by changes in the taxation of different types of cars. With a zero growth in purchases of cars, the growth in household consumption expenditures would have been 2.4 per cent.
In addition to cars, a strong growth in the consumption of clothes contributed to high increase in commodity consumption. This consumption bundle rose by 7.7 per cent.
Government consumption expenditure was 1.3 per cent higher in the first quarter of this year compared to the fourth quarter of last year. Local government expenditure had a stronger growth than central government expenditure.
Slight decrease in investments
Gross fixed capital formation was lower in the first quarter of 2007 than in the fourth quarter of 2006. Gross fixed capital formation in oil and gas extraction, which accounts for about 40 per cent of gross fixed capital formation in Norway, was down by almost 6 per cent.
Investments in the manufacturing declined too, from the unusually high level of the last quarter.
Investments in dwellings rose by 2.2 per cent in the same period.
Still strong growth in exports
Exports of traditional goods rose by 3.7 per cent in the first quarter. High exports of manufactured goods explain most of this growth. Imports of traditional goods rose by 2.3 per cent.
|GDP figures. Seasonally adjusted|
|Percentage change in volume from the previous quarter|
|2nd quarter||3rd quarter||4th quarter||1st quarter||2nd quarter||3rd quarter||4th quarter||1st quarter|
Increase in number of employees
The number of employees continued to grow into the first quarter of 2007, and was 0.8 per cent higher than in the last quarter. The number of employees was up by more than 80 000 compared with the first quarter of 2006.
Revised figures for 2006
Due to new information, the growth in gross fixed formation has been revised down from 8.9 per cent to 7.4 per cent. Most of the revision is done in gross fixed capital formation oil and gas extraction.
The growth in government expenditure has been revised upwards.
|Revised figures of final expenditure and gross domestic product. Percentage change in volume|
|2006||1st quarter 2006||2nd quarter 2006||3st quarter 2006||3st quarter 2006|
|New result||Former result||Seasonally adjusted figures||Unadjusted figures||Seasonally adjusted figures||Unadjusted figures||Seasonally adjusted figures||Unadjusted figures||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||Percentage change in volume from the previous period||Percentage change in volume from the same period in the previous year||Percentage change in volume from the previous period||Percentage change in volume from the same period in the previous year||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||New result||Former result||New result||Former result||New result||Former result||New result||Former result||New result||Former result||New result||Former result|
|Gross domestic product||2.8||2.9||0.8||0.8||6.1||5.9||0.1||0.4||-0.1||0.2||1.7||1.3||2.9||2.8||0.3||0.5||2.5||2.7|
|Household final consumtion expenditure||4.3||4.2||1.7||2.2||4.9||4.7||1.6||1.4||3.4||3.4||0.9||0.8||4.3||4.1||1.0||0.8||4.6||4.7|
|Final consumption of general government||3.3||2.2||2.0||1.6||7.6||7.1||0.6||0.3||-1.1||-1.8||0.7||0.0||4.1||2.6||0.6||0.0||3.0||1.0|
|Gross fixed capital formation||7.4||8.9||-9.2||-7.6||8.1||9.6||8.3||8.3||11.0||11.4||-0.3||-0.6||10.7||10.2||2.4||5.2||1.0||5.3|