NOK 83 billion in surplus

September 1, 2010

The current account surplus was estimated at NOK 83 billion in the second quarter of 2010. The result is NOK 2 billion lower than in the 1st quarter of 2010. The income and current transfers balance is also positive for the 2nd quarter.

Surplus on goods and services balance

The surplus on the goods and services balance was NOK 80 billion in the second quarter. This is NOK 18 billion lower than the first quarter of 2010. The decrease in the goods and services balance was mainly due to a higher import of goods. This was NOK 11 billion higher in the second compared to the first quarter, while service imports were just over NOK 3 billion higher. Meanwhile, exports of goods and services in the second quarter were about NOK 3 billion lower than in the previous quarter. The export value of goods was NOK 193 billion, which is NOK 9 billion lower than in the first quarter of 2010. Most of this is explained by a lower export value of oil and gas.

Large positive net dividend

The income and current transfers balance was estimated at NOK 2.8 billion in the second quarter, while there was a deficit of NOK 12.8 billion in the first quarter. Dividends from abroad increased by NOK14 billion, while the payment of dividends to foreign countries fell by NOK 10 billion. This played a large role in explaining the improvement. Higher interest payments pulled in the opposite direction.

Large direct investment and reduced portfolio investment abroad

Direct equity investment abroad in the second quarter of 2010 amounted to NOK 69 billon. The largest investment took place within the telecommunication and the oil extraction industries. In the same period, the banks sold securities to a value of NOK 25 billion, while the banks’ deposits abroad increased by NOK 142 billion (short-term deposits).

Both the banks and the mortgage companies raised large security loans in the second quarter of 2010, net NOK 30 and NOK 43 billion respectively.

Revisions

New information has provided revisions to the balance of payments for 2008, 2009, and the first quarter of 2010. For 2008 and 2009, the current account was adjusted downward, by respectively NOK 23 and NOK 25 billion. For the first quarter of 2010 the balance was adjusted downward by NOK 12 billion. The biggest revisions have been made to reinvested earnings and compensation of employees and investment income.

For more information about price and volume growth of exports and imports, see the quarterly national accounts.

More details about exports and imports of goods are available in the statistics on external trade in goods.

For more information on the external account, see the theme page.

Balance of payments. 1. quarter 2008-2. quarter 2010. NOK billion
	2008	2009	1. quarter 2008	2. quarter 2008	3. quarter 2008	4. quarter 2008	1. quarter 2009	2. quarter 2009	3. quarter 2009	4. quarter 2009	1. quarter 2010	2. quarter 2010


Balance of goods and services	481	352	123	132	111	116	109	75	71	97	98	80
Balance of income and current transfers	-32	-41	-25	-14	-5	12	-42	10	-4	-5	-13	3
Current account balance	449	312	98	118	106	127	67	85	67	92	85	83
Capital transfers etc. to abroad, net	1	1	0	0	1	0	0	1	0	0	1	0
Net lending	448	311	98	118	105	127	67	85	67	92	84	83
Direct investment, net	86	115	20	28	35	3	4	13	71	27	52	23
Portifolio investment, net	645	14	135	77	209	224	83	48	17	-135	21	-55
Other investment, net	-323	350	-68	24	-124	-155	5	102	25	217	3	150
Revaluations, net	-164	28	-87	-115	81	-44	-241	218	136	-85	84	-15
Increase in Norway`s net assets	284	338	11	3	186	84	-174	303	203	6	168	68