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Norway high GDP and high price level
statistikk
2000-10-05T10:00:00.000Z
Prices and price indices
en
ppp, Comparison of price levels in Europe, gross domestic growth, volume index, personal consumption, price level adjusted GDP, price level index, EU countries, EEA countries, international comparisonsConsumer prices , Prices and price indices
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Comparison of price levels in Europe1998, preliminary figures

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Norway high GDP and high price level

Among European countries in 1998, Norway had one of the highest gross domestic products per capita, even when taking Norways high price level into consideration. On the other hand, household consumption was more in line with the EU average.

The EFTA countries Norway, Switzerland and Iceland were among the countries in Europe with the highest gross domestic product per capita when corrections are made for national price level differences. This is shown in the preliminary statistics from the 1998 purchasing power survey. The same pattern was also evident in 1994-1997. In particular, gross investments combined with a large trade surplus pushed the Norwegian gross domestic product up compared to other countries. It is therefore natural to point out Norways oil and gas activities as a major contributor to the gross domestic product.

The southern EU countries Spain, Portugal and Greece are found in the group well under the EU average. This group also includes EU member applicants Cyprus and Poland.

Personal consumption

In 1998 personal per capita consumption in Norway, corrected for price level differences, was slightly above the per capita average of EU citizens, while Denmark, Iceland, Luxembourg and Switzerland ranked at the top in Europe. The other Nordic countries lie slightly under the Norwegian level. Personal consumption includes household direct purchases of goods and services, the consumption of non-profit organizations and government consumption consumed individually (e.g. education and health care), but does not include common government consumption such as defence and the judicial system. The expanded consumption term is often used in comparisons between countries in order to take into account national differences in the way different types of consumption are financed.

In the course of 1990-1997 personal consumption grew more in Norway than in the EU. Personal per capita consumption in Norway increased by 24 per cent in the period compared with the average per capita growth in the EU. Compared with the other countries, the growth rate is one of the highest. During the same period, many of the large countries such as Germany, the UK, France and Italy have, relatively speaking, seen negative or very low growth.

Personal consumption of fish, non-alcoholic beverages (soft drinks, coffee and tea), electricity, furniture and household appliances, books and magazines in Norway is higher than in other Nordic countries. One explanation for the relatively high Norwegian consumption of electricity could be the relatively low price level of electricity for Norwegian consumers compared with alternative forms of energy. The Norwegian climate also indicates overall high energy consumption.

The lowest personal consumption per capita is found in the southern EU countries Portugal, Spain and Greece, and the EU member applicants Cyprus and Poland.

Final consumption expenditure of households

If we base such a comparison of consumption for 1998 on a more narrow consumption term final consumption expenditure of households the pictures changes somewhat. Final consumption expenditure consists only of the goods and services bought directly by consumers. The level of Norwegian consumption here was slightly under the EU average, while Luxembourg, Switzerland, Iceland and Belgium had the highest consumption. Compared with the levels in the other Nordic countries, Norway was just behind Denmark, while Sweden and Finland were well under the Norwegian level. In 1997 Belgiums index was 115, Denmarks 96, with Norway at 90. Consumption increased in these countries from 1997 to 1998. For the period 1990-1997, Norwegian consumption rose 16 per cent relative to the EU average. This was relatively high compared with the other countries. Here again the big countries show negative or modest growth in 1990-1997.

The southern EU countries Spain, Greece and Portugal and EU member applicants Cyprus and Poland are among the countries with the lowest per capita consumption in 1998.

The Nordic countries high price level

Compared with European countries, the Nordic countries and Switzerland had the highest price level for the gross domestic product in 1998. In the Nordic countries, the price level in Norway, Sweden and Denmark was about the same level, while Iceland and Finland were lower. This pattern was also seen in 1994-1997. A main reason why Iceland and Finland are somewhat lower than Norway is a somewhat lower price level in personal and collective consumption. In the EU, Portugal, Greece and Spain have the lowest price levels. Consumption price levels are based on capital city prices with some exceptions. Other parts of the price material have national coverage.

Volume indices for BNP per inhabitant
            1994           1997           1998
Luxembourg 162 167 169
Switzerland 133 129 131
Norway 123 130 125
Iceland 108 117 123
Denmark 115 123 116
Austria 113 113 114
Netherlands 104 110 113
Belgium 113 112 112
Germany 110 109 110
United Kingdom 99 101 102
Finland 91 99 102
Ireland 85 101 102
Italy 103 100 101
France 107 102 99
Sweden 98 102 99
Cyprus .. 80 81
Spain 76 79 78
Portugal 69 73 71
Greece 63 66 67
Poland 31 36 40

Price level indices for BNP. EU15=100
          1994         1997         1998
Denmark 124 121 127
Switzerland 139 128 126
Sverige 116 120 118
Norway 117 123 118
Iceland 109 106 110
France 108 108 108
Finland 107 109 108
Germany 116 108 107
Luxembourg 108 108 107
Austria 111 104 103
United Kingdom 89 100 103
Belgium 101 98 97
Irland 86 96 97
Netherlands 106 98 95
Italy 86 90 90
Spain 82 81 81
Greece 73 80 77
Cyprus .. 75 76
Portugal 64 65 68
Poland 40 48 46