Deficit declines from August to September

Preliminary figures show a current account deficit of NOK 0.9 billion in September 1998. In August the deficit was NOK 3.4 billion. Part of the reason for the lower deficit can be attributed to higher oil prices in Norwegian kroner and a higher volume of oil and gas exports which served to increase oil and gas revenues by 31 per cent.

In addition, exports of other goods increased by 24.7 per cent. Exports of services were reduced by NOK 0.4 billion from September to August, first and foremost because of lower tourism exports (visitors from abroad). Imports increased by 1.7 billion. Imports of goods increased by 11.2 per cent, while imports of services were reduced by 7.2 per cent.

There was a surplus of NOK 0.6 billion on the goods and services balance in September, an increase of NOK 3 billion compared with August. The goods balance in September shows a surplus of NOK 1 billion, while the service balance shows a deficit of NOK 0.4 billion. In September 1997 the surplus on the goods and services balance was NOK 5.6 billion.

A deficit of NOK 1.6 billion has been calculated for the income and current transfers balance in September of this year, while the average deficit per month so far in 1998 was NOK 1.2 billion. August this year showed a deficit of NOK 1 billion. Higher interest expenses are the main reason for the worsening of the income and current transfers balance. In September 1997 the deficit on the income and current transfers balance was NOK 1 billion.

Norwegian foreign assets were reduced via transactions by NOK 14.1 billion from August to September this year. Both direct investments and portfolio investments were positive, NOK 1.6 and 3.1 billion respectively. International reserves were reduced by NOK 10.6 billion. Other financial investments abroad were also negative, with NOK 8.2 billion. Banks withdrew NOK 8.8 billion in cash and deposits in September 1998. Foreign claims on Norway were also reduced in September 1998, by NOK 14.7 billion. Direct investments in Norway were positive, while portfolio and other financial investments were negative.

New Statistics
Balance of payments, September 1998.
The statistics are published every month in the Weekly Bulletin of Statistics. For more information contact: Bjornar.Ansnes@ssb.no, tel. +47 21 09 48 35, or Tore.Halvorsen@ssb.no, tel. +47 21 09 48 48.

Weekly Bulletin issue no. 49, 1998