GNP drops for first time in 20 years

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Norway’s state statistics bureau SSB reported Thursday that the country’s gross national product (GNP) fell 1.5 percent from 2008 to 2009, when measured in inflation-adjusted prices. It’s the first reduction in GNP since 1989 and indicates that Norway didn’t entirely resist the effects of the global finance crisis. The downturn in Norway’s mainland economy (excluding offshore oil and gas revenues) began in the third quarter of 2008 and continued into the first quarter of 2009, reported news bureau NTB. The downturn didn’t let up until the third quarter of last year, and there was recovery in the fourth quarter. GNP rose 0.3 percent from the third to the fourth quarter. The GNP’s fall is blamed on a drop in consumer demand, with export firms hit especially hard. Increased public spending offset a domestic downturn in the Norwegian economy.
By Views and News staff