Economic perspectives

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1 Economic perspectives Charts Address by Governor Svein Gjedrem at the meeting of the Supervisory Council of Norges Bank on Thursday, February 8 The US housing market Price changes Source: Reuters (EcoWin)

2 Photo: AFP/SCANPIX Equity prices Indices, January 7 = Norway US Europe 8 Jan-7 Mar-7 May-7 Jul-7 Sep-7 Nov-7 Jan-8 8 Source: Reuters (EcoWin)

3 Interest rate premia in the money market Percentage points.. US Euro area Norway.. Jun-7 Aug-7 Oct-7 Dec-7 Feb-8 Sources: Bloomberg, Reuters (EcoWin) and Real interest rate and saving ratio in the US Per cent Saving ratio Long-term real interest rate Source: Reuters (EcoWin)

4 US real interest rate and current account deficit Per cent Long-term real interest rate - - Current account deficit (per cent of GDP) Sources: Reuters (EcoWin) and IMF 7 Current account surplus In billions of USD China Oil exporters Japan Source: IMF 8

5 Norway - current account balance, basic balance and household financial saving In billions of NOK Current account balance Household financial saving ) - - ) The figure for 7 is the sum of Q through 7 Q. Basic balance Sources: Statistics Norway Ministry of Finance and Regional house prices -month rise. Per cent Whole of Norway Rogaland Hedmark Sources: Norwegian Association of Real Estate Agents, Association of Real Estate Agency Firms, FINN.no, ECON Pöyry, Statistics Norway and

6 Inflation CPI. -year moving average. Per cent 8 8 Inflation target Sources: Statistics Norway and s key policy rate Per cent Source:

7 Krone exchange rate and interest rate differential Index and per cent Krone exchange rate ) (left-hand scale) Interest rate differential (right-hand scale) ) A rising curve denotes an appreciation of the krone Sources: Reuters and Population growth and net inward migration In thousands Registered employed from new EU countries In thousands Population growth Romania Latvia Estland Litauen Polen Net inward migration Sources: Statistics Norway and the Central Office - Foreign Tax Affairs 7

8 Change in employment In thousands Sources: Statistics Norway and Productivity growth Per cent Average -7 - Average 8s Sources: Statistics Norway and 8

9 Terms of trade Index Norway incl. oil Mainland Norway Sweden Finland Sources: Reuters (EcoWin), Statistics Finland and Statistics Norway 7 Real krone exchange rate Index. Average 7 7 = 8 8 Average Sources: Statistics Norway, Ministry of Finance and 8

10 Real wage growth and wage share Index and per cent 7 Wage share (left-hand scale) Real wage growth (right-hand scale) Sources: Statistics Norway and the Technical Reporting Committee on Income Settlements Wage differential in OECD countries in Ninth decile/first decile Norway Sweden Finland Denmark Japan France Germany UK Ireland Polen US Source: OECD

11 Share of persons with low income Per cent EU average Norway Sweden Denmark France Germany Italy Ireland Source: Statistics Norway Income in selected countries in Adjusted for purchasing power. In thousands of EUR Norwegian low income threshold Polen EU Sweden France Germany Denmark UK Norway Source: Eurostat

12 Share of persons in Norway with low income threshold. Per cent 7 8 Source: Statistics Norway Government Pension Fund Global In billions of NOK Source:

13 Pension obligations and the Government Pension Fund Per cent of mainland GDP The National Insurance Scheme's old age pension obligations Government Pension Fund Source: Large sovereign-wealth funds and foreign exchange reserves In billions of USD China United Arab Emirates Singapore Russia Norway Saudi Arabia Kuwait Algeria Libya Qatar Sources: Morgan Stanley Research and IMF

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