Economic Survey 2-2008

Economic indicators now show that the Norwegian economy may have passed the cyclical peak and that we are now moving into a period of lower growth. It is primarily developments in household consumption and housing investment that are dragging down growth. Weaker impulses as a result of an international cyclical slowdown are also contributing to the downward shift in the Norwegian economy. On the other hand, business investment is still expanding rapidly and so far there are no signs of slower growth. The economic picture for Norway is thus mixed, while the global economy is clearly marked by lower growth. Growth is particularly weak in the US, but growth prospects have also deteriorated for many of Norway's traditional trading partners.