Slow growth in GDP for Mainland Norway
Preliminary figures from national accounts show that the gross domestic product (GDP) for Mainland Norway increased in the 2nd quarter. The slowdown in gross fixed capital formation and in exports of traditional goods has ceased, while both household and government final consumption expenditure has increased.
The GDP for Mainland Norway was up by 0.3 per cent in the 2nd quarter after falling in the previous two quarters, according to seasonally-adjusted figures. Increased household and government final consumption expenditure contributed significantly to the growth, while gross fixed capital formation in extraction of oil and gas had a particularly negative impact on the GDP. The economic downturn in the past year has contributed to a drop in the GDP for Mainland Norway by 2.2 per cent in the first half of 2009 compared to the same period in 2008.
Increased activity services, drop in production of goods
Increased activity in service industries, particularly in business services, wholesale and retail trade, post and telecommunications – as well as in general government – contributed to the growth in GDP for Mainland Norway.
For the fourth quarter in a row, value added in manufacturing fell. The reduction in the 2nd quarter was 1.4 per cent. However, compared with the two previous quarters, the decrease was less pronounced. Large parts of manufacturing have been hit by the lower international activity during the latter quarters. From the 1st to the 2nd quarter, units producing chemical and mineral products and machinery and other equipment particularly reduced their activity. Value added in production of wood and wood products, however, was up after several quarters of reductions.
The drop in production of electricity had a negative impact of approximately 0.2 percentage points on the GDP for Mainland Norway. Value added in construction was down by 0.8 per cent, but the drop was less pronounced than in the previous two quarters.
However, the total GDP was down by 1.3 per cent in the 2nd quarter as a result of reduced value added in extraction of oil and gas.
Source: Statistic Norway