Despite Energy Reserves, Norway Slips Into Recession

Norwegian kroner

The slowdown in global economic activity has tipped Norway into recession, despite the country’s deep oil reserves and strong budget position.

Gross domestic product for Norway, excluding petroleum-related activity, contracted by 1 percent during the first quarter of 2009 from the previous quarter, when it declined 0.8 percent, Statistics Norway, the country’s data agency, said on Tuesday.

That met the generally accepted definition of a recession — two consecutive quarters of contractions — for the first time since 1993. The economy of Norway expanded last year by 2.6 percent and by 6.1 percent in 2007.

To read the full story by the New York Times, click here.