11 per cent increase in net assets

General government gross financial assets are estimated at nearly NOK 11 trillion at the end of the second quarter of 2017. Net financial assets, calculated by subtracting debt from assets, have increased by NOK 954 billion in the last four quarters. Eighty-six per cent of this increase stems from revaluations.

The Petroleum Fund largely accounts for the asset increase

Central government assets have increased by NOK 998 billion in the last four quarters. NOK 843 billion of this increase is attributed to the increase in the market value of the Government Pension Fund Global, which is invested globally in international equities, fixed income and real estate. Furthermore, the Government Pension Fund Norway has increased its market value by NOK 21 billion. The asset holdings of the two Pension Funds together account for NOK 8.2 trillion of the total central government holdings of NOK 10.6 trillion.

Increased local government debt

Net local government debt has increased in recent years due to a high level of investment. By the close of the second quarter of 2017, debt exceeded assets by NOK 120 billion. NOK 100 billion of the negative balance has been generated in the last ten years. Net debt growth slowed somewhat in 2015 and 2016 – partly as a result of increased local government tax receipts.

Increased gross debt

General government gross debt, as measured by the Maastricht criteria, has increased by nearly 6 per cent since the second quarter of last year. The debt now totals NOK 1 150 billion, which equals 36 per cent of GDP of the last four quarters. Despite having increased in the past few years, the debt-to-GDP ratio is still lower than in the years between 2009 and 2011. In this period this share was above 40 per cent.