The central government's net financial investment rose to a record high in 2022, the SSB reports. However, the main picture for households was the opposite. The sector has reduced its net financial investment after a large decline in savings last year.
The 2022 provisional financial statements show that the main picture has changed in several sectors. The government's net financial investment increased from NOK 425 billion in 2021 to NOK 1493 billion in 2022. Last year course crowns weakened and increased in value foreign receivables in Norwegian kroner. Negative price movements in the securities markets resulted in a net loss of NOK 1,074 billion for the central government. However, the financial net worth increased by NOK 419 billion to NOK 15 billion at the end of 232.
Household net financial investment fell from NOK 128 billion in 2021 to NOK 72 billion in 2022. Net losses in securities markets of NOK 142 billion reduced net financial wealth by NOK 70 billion to NOK 1721 billion at the end of 2022.
Banks' net financial investment increased from NOK 21 billion in 2021 to NOK 27 billion in 2022.
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Oil and gas prices boost SPU tax revenues and investments
Very high net financial investments in 2022 are explained by a large increase in tax revenues due to the increase in oil and gas prices, which was also due to, among others, war in Ukraine. Net financial investments of the central government accounted for almost 2022% in 42. GDP of mainland Norway. This is the highest share in GDP calculated in the period from 1996 to 2022 inclusive.
The net financial investment of the central government is largely determined by the investment of the Government Pension Fund Global (SPU). The SPU is funded by tax revenues from oil and gas operations on the Norwegian continental shelf. The tax proceeds are invested in international capital markets and the investments generate income from the assets, which is reinvested in the fund and profits or losses as a result fluctuations in currency rates and market prices.
Banks' net financial investments are growing
In autumn 2021, Norges Bank started to raise the main interest rate. The growing interest rate increased the banks' net interest income, which affected the overall result of the banks. Solid profits in 2022 boosted bank saving and net financial investment in financial accounts.
Household costs increase and decrease net financial investment
In 2022, the financial situation of households changed slightly. Household net interest costs increased during the year, and rising prices resulted in an increase in the cost of living. Increased costs reduced net savings and financial investments in financial accounts. However, net financial investment was still positive in 2022, accounting for 3,9%. disposable income. This is much more than in 2019, when net financial investments were calculated at 0,2 percent. disposable income. 2019 was the last normal year before the pandemic and war in Ukraine.
Debt growth has slowed down. This relationship is illustrated by debt transactions, which in all four quarters of 2022 were lower compared to the quarters of 2021. This is largely due to the growing interest rate in the last year.
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Source: Statistics Norway
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