This is an archived release.
Outstanding year for Norwegian economy
2007 was an extraordinarily good year for the Norwegian economy, with strong growth in gross domestic product (GDP) for mainland Norway, domestic demand and employment.
GDP for Mainland Norway rose by 6 per cent in 2007, according to preliminary figures from the National Accounts. This is the strongest growth since 1971, and follows several years of high growth rates. GDP for Mainland Norway, measured in constant prices, was 20 per cent higher in 2007 than in 2003.
The growth in the GDP for Mainland Norway was broadly based, with strong growth in production of both commodities and services.
The growth was particularly strong in the first three quarters, but somewhat weaker in the fourth quarter. The service output was the main contributor to the growth in the fourth quarter, but the manufacturing industry also experienced strong growth. On the other hand, there was a decrease in the production of electricity in the fourth quarter, following three consecutive quarters of strong growth.
In 2007, the gross production of oil and gas fell by 4 per cent compared to 2006. This was partly due to technical stops on some of the offshore oil drilling platforms, and led to lower growth in total GDP than in Mainland GDP. There was an increase in oil and gas production from the third to the fourth quarter.
|2006||2007||4th quarter 2006||1st quarter 2007||2nd quarter 2007||3rd quarter 2007||4th quarter 2007|
|Gross domestic product (GDP)||2.5||3.5||0.3||0.7||1.1||1.5||1.3|
|Petroleum activities and ocean transport||-4.1||-4.4||-3.1||-1.7||-1.9||-0.2||2.5|
|Final domestic use of goods and services||5.5||5.4||1.1||-0.6||3.3||1.5||3.1|
|Final consumption exp. of households||4.6||6.5||1.3||2.8||1.2||1.1||1.4|
|Final consumption exp. of general government||2.9||3.2||0.7||0.7||0.9||1.2||0.3|
|Gross fixed capital formation||7.3||9.6||2.7||-1.1||4.3||4.5||8.2|
|Total man-hours worked||2.6||4.0||0.6||1.2||1.3||0.7||0.9|
Strong growth in household consumption
Household consumption rose by 6.5 per cent form 2006 to 2007. This is the strongest growth since 1996 and the fourth consecutive year of growth in household consumption of more than 4 per cent. Commodity consumption rose by 7.7 per cent and service consumption by 4.6 per cent.
Purchases of cars increased by almost 20 per cent in 2007, and this pulled the total growth in household consumption up by one percentage point. There was a strong increase in consumption of other commodities too, for instance consumption of clothes and footwear, which rose by almost 15 per cent in 2007.
The growth in household consumption was strong throughout the year, but there was a marked decline in commodity consumption growth in the fourth quarter. This was caused by slower growth in purchases of durable goods and a decrease in household consumption of electricity.
Municipality consumption rose more than central government consumption
Public consumption was up by more than 3 per cent in 2007. Central government consumption rose by 2 per cent, while municipal consumption rose by 4.5 per cent. Both in central and local government, the increase was a result of higher spending on health and social services.
Large investments in manufacturing industry
Gross domestic capital formation increased by almost 10 per cent in 2007. Gross fixed capital formation in oil and gas extraction accounts for about one quarter of total gross fixed capital formation in Norway. These investments rose by 6.6 per cent in 2006. Gross fixed capital formation in the manufacturing industries had a very strong growth in 2007, and rose by almost 24 per cent. The growth was particularly strong within the chemical industry, metal industry machinery production.
Investments in dwellings rose by 6.3 per cent in 2007. This is about the same growth rate as in 2006.
Public investments increased by 4.1 per cent in 2007. The growth was particularly strong in the fourth quarter, due to the delivery of a military frigate. Such investments are entered in the national accounts when the delivery takes place.
Trade surplus down
Total imports rose by 8.6 per cent in 2007, while total exports rose by 3.2 per cent. Imports of traditional goods increased by 8.2 per cent, while imports of services increased by 5.6 per cent. Exports of traditional goods increased by 9 per cent.
The total trade surplus in 2007 came to NOK 377 billion, NOK 16 billion lower than in the previous year.
|4th quarter||1st quarter||2nd quarter||3rd quarter||4th quarter||1st quarter||2nd quarter||3rd quarter|
Employment up by 93 000
The number of employees in Norway rose by 3.8 per cent, or 93 000 persons, from 2006 to 2007. The growth was strongest in construction and in business services. Public sector employment rose by 18 000, and the majority of the increase took place in local government.
Wages and salaries per full-time equivalent person rose by 5.6 per cent from 2006 to 2007, compared with 4.9 per cent from 2005 to 2006.
The figures for 2006 and the first three quarters of 2007 have been revised following the incorporation of new statistics.
The growth in GDP for Mainland Norway in 2006 has been revised upwards by 0.5 per cent, from 4.3 to 4.8 per cent. This revision is to a great extent linked to new and preliminary information about the manufacturing industry. As a result of this information, the gross output in the manufacturing industry has been revised upwards from a growth of 4.2 per cent to a growth of 7.1 per cent. There were only minor revisions in the GDP in the three first quarters of 2007.
There have also been some revisions in the labour market figures for 2006. Wages and salaries per full-time equivalent person have been revised upwards to a growth rate of 4.9 per cent against 4.3 per cent in the previous release. This is mainly due to new information on overtime salaries, the share of part-time employments and payments in kind.
|2006||1st quarter 2007||2nd quarter 2007||3rd quarter 2007|
|New result||Former result||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|
|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||2.5||2.2||0.7||0.6||2.4||2.0||1.1||1.0||3.6||3.3||1.5||1.4||3.4||3.1|
|Household final consumtion expenditure||4.6||4.1||2.8||3.1||7.3||7.4||1.2||1.6||6.3||7.3||1.1||0.7||5.9||6.5|
|Final consumption of general government||2.9||3.0||0.7||0.7||2.2||2.2||0.9||0.9||3.7||3.7||1.2||1.1||3.7||2.8|
|Gross fixed capital formation||7.3||6.5||-1.1||-0.8||7.5||7.6||4.3||2.9||3.9||2.9||4.5||2.9||10.5||6.8|