XI 190 1954 - Statistisk sentralbyrå

Summary. 137
Summary.
In rev iew, 1954 appears as another year of
prosperity and growth for the Norwegian economy.
The upturn in economic activity that
became apparent in the autumn of 1953 continued
unabated. Thus, the period from late
1951 to the autumn of 1953 stands out as the
only pei . iod of stagnation since the war. The
increas( in net national product is provisionally
estimated at 4 per Cent for 1954. This
rate of increase is slightly below the average
increase for the prosperous prewar period
from 1934-1939. However, the increment in
employment for last year was not as large
as in the prewar period. This is due to a
smaller pool of unemployed and to a smaller
increas( in the labour force as compared with
the lat( :1930's.
The I .eightened activity during 1954 increased
t he pressures on certain parts of the
Norwegian economy. Although wholesale prices
reni :lined relatively stable, the cost of
living index increased appreciably. In its relationshir
with the rest of the world Norway
showed •Hi n even greater deficit in its balance
of payn H:ints than in 1953.
The g rowth in domestic production was in
respons.: , to increases in both domestic and
foreign demand for Norwegian goods and
services. Favorable conditions of nature also
contributed to the increase in output. For
example unusually large catches of winter
herring supplied the raw material for an all
time high in the output of the herring oil
industr:, This, in turn, was an important
source o f the increase in exports. The general
level of demand for all industrial products
enabled the Norwegian industries to utilize
more ef ficiently their greatly increased and
modern i:!,ed plant.
Forei;:::m demand has increased mainly as
a consequence of the general expansion of
econom activity in Western Europe. Prices
of export goods have, by and large, remained
stable. The increase in exports has been
distribu ted over most of the commodities produced
U T the export market.
The i ncrease in domestic demand seems to
have lo (!en influenced mainly by increased
exports and by a less contractive fiscal policy
by thc central government. Government
purchm; es of goods and services were appreciably
1:1.rger than in 1953. In particular, mili-
9* -- økonomisk utsyn.
tary outlays have risen. These two types of
demand contributed to a rise in the income
flowing to the private sectors of the economy.
These higher incomes appeared as increases
in both undistributed corporate earnings and
in personal income. Because of changes in
the personal income tax law, net taxes --
tax payments minus public contributions to
individuals remained approximately at 1953
levels despite the increment in personal
income. This increase in income, after taxes,
coupled with approximately a constant rate
of personal saving resulted in an appreciable
increase in consumer spending.
Domestic investment (excluding general
government) also increased in relation to
1953. This increase in capital outlays was, in
all probability, both a cause of, and a result
of, the general increase in demand.
The gross national product of Norway for
1954 is provisionally estimated at 24 800
million Norwegian kroner. This is an increase
of 1 700 millions over 1953, part of which,
however, is due to the higher level of prices
in 1954. In constant 1950 kroner, the gross
national product rose from 18 100 million
kroner in 1953 to a provisional estimate of
18 800 million kroner in 1954. Production
increased in almost all sectors of the economy,
but the increase in manufacturing activity
was mainly responsible for the magnitude of
the overall increase in the national product.
The number of employed salary and wage
earners increased by 22 000 (average of end
of month figures) or 2,3 per cent over 1953.
September was the peak month when 1 230 000
salary and wage earners were reported. This
peak was approximately 24 500 greater than
in July 1953, the highest month in 1953. The
increment in mich employment was considerably
greater than the net additions to the
labour force. This level was made possible by
shifts from own account to salary and wage
earner employment.
From the third quarter of 1953 to the third
quarter of 1954 the number of employees in
manufacturing increased by 8 000 (average of
end of month estimates) or a rise of 2,6
per cent. The increase in manufacturing
accounted for about 1/3 of the national
increase in salary and wage earner employment.
In the building and construction indu-