Economic Survey 3-2006

The boom in the Norwegian economy has intensified so far in 2006. In recent quarters, economic growth measured by mainland GDP has been close to 4 per cent on an annual basis. Unemployment has shown a clear fall over several quarters and the unemployment level is now almost as low as at the time of the cyclical peak towards the end of the 1990s. A reduction in average working hours has amplified the fall in unemployment in recent months. Growth in the Norwegian economy has been broadly based, with high growth in demand in the mainland economy, investment demand in the petroleum sector and demand from abroad. This is also reflected in the distribution of growth by industry where value added in most mainland industries is growing. The cyclical upturn has now spanned three years and the Norwegian economy has been in a boom period since 2005.