Economic Survey 1-2002

2001 was the third year in which the Norwegian mainland economy recorded a growth pause. In the course of last year, the labour market showed some deterioration while underlying price inflation gradually slowed, partly as a result of a substantially stronger krone exchange rate. 2001 was a favourable year for most people due to growth in real income and high employment. A high oil price over the past two years has resulted in record current account surpluses, and petroleum revenues have been manifested in a rapidly rising Government Petroleum Fund. This, combined with high cost inflation and increasing pressures on the public sector, led to important economic policy choices. 2001 was the year in which we decided to move forward – not backward into an oil-driven economy.