New figures from the National Accounts show that GDP Mainland-Norway increased by 0.1 per cent from the second to the third quarter, measured in fixed prices.
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In September, GDP grew by 0.3 per cent, but the growth in July and August has simultaneously been revised down somewhat compared to previous publications.
"The Norwegian economy is now in a business cycle phase where weak demand slows down growth," says Head of National Accounts at Statistics Norway, PÃ¥l Sletten.
High prices and rising interest rates have reduced households purchasing power through 2022 and 2023.
This has slowed down the growth in consumption, and the construction of dwellings has fallen sharply. To some extent, this is counteracted by the rise in oil investments. Growth in employment has almost stopped.
A couple of special circumstances affected the Norwegian economy in the third quarter. There was extreme weather in August and heavy rainfall during the quarter. Although the storm caused damages in parts of the country, it had little effect on the economy.
"The large amount of rainfall particularly affected activity in agriculture. It also contributed to high hydroelectric power production. Excluding the unusual development in the agricultural and electricity industries, there would have been a decrease of 0.1 per cent in GDP Mainland Norway in the third quarter," says Sletten.
High prices for energy products were one reason for the general price increase last year, but so far this year the prices of petroleum products and electricity have fallen. Compared to the prices a year ago, the prices have now been reduced by around 60 per cent.
Overall, prices in the Norwegian economy grew 0.9 per cent from the second to the third quarter, measured by the gross product deflator for mainland Norway, the part of the price increase that is not due to changes in import prices.
The price contribution from exposed industries now particularly large. According to preliminary figures, profitability in manufacturing and other sectors exposed to competition appears to be high.
The price increase in the sheltered sector was also significantly higher in the 3rd quarter than it has been previously. ■