Marked growth in mainland Norway
Gross domestic product (GDP) for mainland Norway grew by 0.9 per cent in the 3rd quarter, compared to an increase of 0.5 per cent in the two previous quarters. The growth was led by increased final consumption expenditure by households and general government as well as increased exports excluding crude oil and natural gas.
Seasonally-adjusted figures for the total GDP show a drop of 1.6 per cent. The drop stems from a substantial slowdown in oil and gas extraction due to planned maintenance on several oil fields in the 3rd quarter.
Increased production of goods and services
Both goods and service producing industries grew in the 3rd quarter of 2010. Manufacturing rose by 1.9 per cent, due in part to growth in the machinery and other equipment n.e.c. industry as well as in basic chemicals. The construction industry advanced by 1.7 per cent.
Production of electricity and gas supply grew by 3.7 per cent from the 2nd to the 3rd quarter according to seasonally-adjusted figures, and contributed in isolation to 0.1 per cent of the growth in GDP of mainland Norway. This compares to the slowdown of output in this industry during the first half of 2010.
The activity in the private service producing industries rose by 0.7 per cent from the 2nd to the 3rd quarter. Increased wholesale and retail trade contributed the most, but positive growth rates were seen in most of the service producing areas. General government activity rose by 0.3 per cent for the second consecutive quarter.
Growth in households’ final consumption expenditures
Final consumption expenditures of households increased by 1.3 per cent, with growth in the consumption of both goods and services. Direct purchases abroad by resident households rose by 4.9 per cent, compared to a significant drop in the previous quarter, which was influenced by the reduced aviation activity following the volcano eruption in Iceland.
|2008||2009||4th quarter 2008||1st quarter 2009||2nd quarter 2009||3rd quarter 2009||4th quarter 2009||1st quarter 2010||2st quarter 2010||3st quarter 2010|
|Gross domestic product (GDP)||0.8||-1.4||-0.1||-0.5||-1.1||0.7||-0.2||0.5||-0.2||-1.6|
|Petroleum activities and ocean transport||-2.6||-1.7||3.3||-0.6||-4.6||3.2||-2.7||0.4||-2.4||-10.2|
|Final domestic use of goods and services||1.9||-3.7||-0.5||-3.9||0.7||-0.5||0.2||0.9||4.4||-1.2|
|Final consumption exp. of households||1.5||0.0||-1.0||-0.6||1.8||1.0||1.3||0.7||-0.2||1.3|
|Final consumption exp. of general government||4.1||4.7||0.3||2.8||0.9||1.0||-0.6||1.3||1.3||0.7|
|Gross fixed capital formation||2.0||-7.4||3.4||-5.0||-5.8||-4.2||7.3||-14.0||7.9||-7.0|
|Total man-hours worked||3.5||-1.8||-0.8||-0.6||-0.3||-0.3||-0.1||0.0||0.1||0.3|
Final consumption expenditures of general government rose by 0.7 per cent, mainly due to growth of final consumption expenditures of health services in both local and central government.
Reduced investments in oil and gas extraction
Gross fixed capital formation in oil-related activity combined fell by almost 13 per cent in the 3rd quarter.
Households’ investments in dwellings grew by 2.2 per cent in the 3rd quarter, which is somewhat stronger than the two previous quarters.
Investments in the private sector of mainland Norway fell by 2.1 per cent. Gross fixed capital formation in manufacturing and mining and quarrying fell by 8.2 per cent. The largest drops in investment levels were seen in refined petroleum, chemical and mineral products as well as in machinery and other equipment n.e.c.
Exports of traditional goods expands
Exports of traditional goods increased by 2.2 per cent in the 3rd quarter, with the strongest contributors being fish and fish products and chemical and mineral products.
The fall in export volumes of crude oil and natural gas contributed to a drop in total exports of 1.3 per cent from the 2nd to the 3rd quarter. Imports of traditional goods fell by 1.7 per cent.
Modest increase in employment
Employment grew by 0.2 per cent in the 3rd quarter. The positive growth rate stems from increased employment in local government, wholesale and retail trade and construction. For other industries, the employment levels were relatively stable with the exception of business services, which had a fall in employment. Total hours worked increased by 0.3 per cent, following a reduction in sick leave.
Revisions of 2009 and 2010
Gross fixed capital formation in the oil-related industries is revised upwards with 7.5 percentage points in 2009 due to the incorporation of new information. This led the growth rate of GDP for mainland Norway to increase by 0.1 percentage points from 2008 to 2009.
For 2010 new information has been incorporated for the first two quarters. The unadjusted figures for GDP mainland Norway have been revised downwards by 0.1 percentage points in the 1st quarter, while the 2nd quarter has been revised upwards by 0.2 percentage points. This is mainly due to new information on the service producing industries. The seasonally-adjusted figures are revised upwards by 0.3 percentage points in the 1st quarter, while remaining the same for quarter two. The incorporation of new information on direct purchases abroad by resident households led to an upward revision of households’ final consumption expenditures.
|2009||1st quarter 2010||2nd quarter 2010|
|New result||Former result||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|
|New result||Former result||New result||Former result||New result||Former result||New result||Former result|
|Gross domestic product (GDP)||-1.4||-1.4||0.5||0.2||-0.8||-0.8||-0.2||0.1||1.6||1.4|
|GDP Mainland Norway||-1.3||-1.4||0.5||0.2||0.4||0.5||0.5||0.5||2.1||1.9|
|Household final consumtion expenditure||0.0||0.0||0.7||0.5||6.0||5.9||-0.2||-0.6||2.0||1.3|
|Final consumption of general government||4.7||4.7||1.3||1.4||1.9||2.3||1.3||1.2||3.3||3.1|
|Gross fixed capital formation||-7.4||-9.1||-14.0||-10.4||-17.8||-13.9||7.9||7.3||-4.3||-4.9|
|Percentage change in volume from the previous quarter|
|4th quarter||1st quarter||2nd quarter||3rd quarter||4th quarter||1st quarter||2st quarter||3st quarter|
Source: Statistics Norway