Economic Survey 1-2006

In 2005, growth in the mainland economy continued at the same pace as in the previous year. The cyclical upturn in the Norwegian economy has now spanned two and a half years. Since the cyclical trough was passed in summer 2003, growth has not been particularly high in the context of a cyclical upturn. The cyclical deviation from trend level in activity thus remains modest. Unemployment has declined and is now clearly lower than previously. Consumer price inflation has been low during the upswing and remains low adjusted for energy prices and tax changes. High oil prices, which partly reflect strong growth in the global economy over several years, have contributed to high growth in real disposable income in Norway and very high current-account surpluses.