Economic Survey 3-2002

Figures from the quarterly national accounts (QNA) show that the Norwegian economy expanded at a moderate pace in the first half of 2002. Both total GDP and mainland GDP were only slightly above the level recorded in the second half of 2001. The level of gross investment and exports was lower than in the previous six months, while household and public sector consumption demand increased. Growth in household consumption, however, was moderate in relation to the sharp rise in real income, which reflects high wage growth and subdued consumer price inflation. Employment growth was low and pressures in the labour market are subsiding. The gradual slowdown in the Norwegian economy, which began after the cyclical peak was passed in 1998, has therefore persisted.