National accounts, non-financial sector accounts, Q4 2016

Households’ disposable income went up just over NOK 2 billion from the 3rd to the 4th quarter of 2016, according to seasonally-adjusted figures. Compensation of employees remained unchanged, while payments and benefits received from general government, mostly work-related benefits, increased by NOK 2 billion. Property income received increased more than property income paid and contributed to a higher disposable income.

Final consumption expenditure increased slightly more than disposable income, and with unchanged adjustment for changes in pension entitlements, household savings decreased in the 4th quarter. The seasonally-adjusted savings rate was 7.7 per cent.

Decreased real disposable income in 2016

Preliminary figures show that households’ disposable income was up 1.5 per cent in 2016 compared with the previous year. Adjusted for population growth, the increase was just 0.6 per cent, which corresponds to a disposable income per capita of NOK 261 000. Households’ saving amounted to NOK 105 billion in 2016. Saving per capita was about NOK 20 000. The yearly savings rate for households was 7.3 per cent, clearly lower than 10.8 per cent in 2015. However, the savings ratio in 2016 is just 1 percentage point lower compared to the average over the past five years.

Increased income for non-financial corporations

The operating surplus of non-financial corporations has decreased over the last years, and the negative trend continued in 2016. Compared to 2015, the operating surplus was NOK 70 billion lower. Reduced property income paid and lower taxes contributed to an increased disposable income and net lending.

Income in the general government decreased in 2016, especially due to reduced petroleum-related taxes. Growth in property income received was also negative compared to 2015. Payments and benefits to household and consumption expenditure increased, leading to savings in general government of NOK 161 billion in 2016, which is NOK 80 billion lower than the previous year.

Lower disposable income for Norway

Norway's real disposable income in 2016 decreased 2.9 per cent, mainly due to a deterioration in the terms of trade. The price development of oil and gas contributed 4.1 percentage points to this decline. The change in terms of trade contributed overall with 4.3 percentage points of the decline. Production growth in the petroleum industry and on the mainland helped, however, to push up real disposable income by 1 percentage point, while changes in income and transfers of balance of payments contributed to the increase in real disposable income by 0.4 percentage points.

For more on contributions to real disposable income, see Table 41 below annual national accounts.

Figures for the 1st to 4th quarter of 2015 and 1st to 3rd quarter of 2016 have been revised

In connection with the release of figures for the 4th quarter of 2016, new information has been incorporated for all quarters from the 1st quarter of 2016. In addition, new figures for petroleum-related taxes in 2015 have been revised.