According to the Norwegian Statistical Office, the GDP of mainland Norway fell by 0,2 percent in January. The biggest contributor to the decline was the sharp decline in commodity trade, including car trade.
– There were a lot of car purchases at the end of last year because people wanted to avoid the tax on electric cars, which was introduced at the turn of the year. However, car purchases were historically low in January. This is the main reason for mainland GDP Norway is falling, says Pål Sletten, head of the National Accounts section.
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New figures show that the decline in trade contributed to mainland Norway's gross domestic product (GDP) falling by 0,3 percentage points from December to January. In addition to trade in goods, the service industry developed. In addition, the gross product in industry increased. Mainland Norway's rolling three-month GDP growth was 0,4 percent from August-October to November-January.
– Car purchases have recently caused unusually large fluctuations in monthly national accounts data. However, fundamental changes in the continental economy appear positive but rather weak, says Sletten.
Energy prices drive the overall price increase in the economy
In January, the decline in natural gas and electricity prices continued. This has reduced the value of Norwegian production and exports. Total GDP fell by 2,7 percent. measured in current prices.
“Energy prices have driven the overall price increase in the economy, but since their peak in August last year, energy commodity prices have fallen significantly. Admittedly, energy prices are still very high, says Sletten.
From December to January, household consumption fell by 11,5 percent. The sharp decline was mainly due to a decline in car purchases.
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Source: Statistics Norway
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