Economic Survey 1-2005

In many areas, developments in the Norwegian economy were favourable in 2004. Mainland GDP showed higher growth than can normally be expected. The moderate downturn that started in 2002 is now basically behind us. Prices for many important Norwegian export products rose markedly between 2003 and 2004, and in general far more than prices for Norway's imported goods and services. This resulted in terms-of-trade gains for Norway which, combined with GDP growth, led to an increase of 8 per cent in national disposable income in 2004. Comparable figures for GDP per capita show that Norway has one of the highest income levels in the world. The picture should, however, be adjusted because a substantial share of the value of petroleum production does not constitute income in the ordinary sense, but represents a tapping of natural resources. Norway saves a considerable share of current petroleum revenues. Preliminary estimates show that the current account surplus was close to 14 per cent of GDP in 2004, and gross investments in fixed assets came to 18 per cent of GDP.