Annual national accounts, 2012

Value added in extraction of crude oil and natural gas was nearly unchanged from 2011 to 2012, which led to a growth in total GDP of 3.2 per cent, according to preliminary national account volume figures. In comparison, the average annual growth of GDP for mainland Norway was 4.7 per cent in the period from 2004 to 2007.

Increased goods and service production

The strongest contribution to growth in GDP for mainland Norway was from the construction industry, which grew by 7.4 per cent from 2011 to 2012 and which counted for nearly 0.5 percentage points of the increase in GDP for mainland Norway. Growth in construction was especially strong in the first half of 2012, and then levelled out in the last two quarters. Production and supply of electricity also contributed strongly to the growth in GDP for mainland Norway, and accounted for approximately 0.4 percentage points. Aquaculture grew by 22 per cent, while traditional fisheries fell for the second year in a row.

Value added in manufacturing grew by 2.4 per cent. Production in machinery and shipbuilding industries were up, while commodity-based manufacturing was down.

Service-producing industries excluding general government grew by 3.3 per cent in 2012. Strong growth was especially evident for professional, scientific, technical and administrative and support service activities – industries that are closely connected to petroleum activity.

General government dampened growth in GDP

Value added in general government grew by 1.8 per cent. Growth in local government value added was somewhat stronger than central government, and within local government growth was especially evident in social services, including childcare. Gross fixed capital formation in general government rose slightly from 2011 to 2012.

Higher investments in petroleum activity

Gross fixed capital formation (GFCF) in total increased by 8.1 per cent in 2012, which is primarily due to higher GFCF in extraction of crude oil and natural gas. The volume of GFCF in manufacturing was about the same as in the previous year. Investments in dwellings were high both in 2010 and 2011 and rose by 7.4 per cent in 2012. GFCF in mainland Norway excluding general government grew by 4.7 per cent.

Employment and average annual earnings

Employment increased by 58 000 persons, or 2.2 per cent, in 2012. About one third of the increase stems from professional, scientific technical and administrative and support service activities, and construction. Employment in manufacturing grew by 0.7 per cent, while general government rose by 1.7 per cent, or 14 000 persons. Total hours worked in total grew by 2.1 per cent in 2012, up from 1.8 per cent in 2011.

The growth in average annual earnings for all employees is estimated at 4.0 per cent in 2012, down from 4.2 per cent in 2011. Growth in average annual earnings in manufacturing is estimated at 4.3 per cent, and 4.2 per cent in general government.

Due to a relative modest price increase of final consumption expenditures of household and non-profit serving institutions serving households, growth in real average annual earnings is estimated at 3.1 per cent in 2012, compared to 2.8 per cent in 2011.

Moderate consumption growth

Household final consumption expenditure grew by 3 per cent in 2012. The growth in consumption has had an average annual growth rate of 2.2 per cent from 2007, while it was 5.1 per cent in the period from 2004 to 2007.

The growth in consumption of goods was up by 2.1 per cent. Positive contributions were made by the consumption of food, clothing and electricity, among others. Consumption of services grew by 3 per cent, helped by the consumption of leisure activities, rent and accommodation and food services. Household consumption abroad continued to rise sharply for the third year in a row, and contributed in isolation with 0.6 percentage points to the growth in household final consumption expenditure.

Trade surplus

The trade surplus increased by NOK 20 billion from 2011, which is related to increased oil and gas prices, and is estimated to be NOK 385 billion in 2012.

In terms of volume, exports increased by 2.2 per cent in 2012. Exports of traditional goods grew by 2.6 per cent, with strong contributions from exports of farmed fish, machinery and equipment and electricity. Export of electricity accounted for close to 1.1 percentage points of the growth in exports of traditional goods. Exports of services grew by 6 per cent, with marked growth in exports of petroleum-related services and ocean transport abroad.

Imports rose by 3.3 per cent. Imports of traditional goods were up 2.1 per cent and imports of services by 10.3 per cent. Household consumption abroad served to pull up the growth in total import of services by 3.5 percentage points.