Employment growth Per cent 6 4  6 4  General government  2  2  0  0 -2  -2 Manufacturing  -4 91  BIS Review 14/2001  92  93  94  95  96  97  98  99  -4  00  1  Whereas the upturn was balanced for a long period, the public sector has laid claim to a large share of the increase in the labour supply in recent years. Manufacturing employment has fallen markedly since 1998. The mainland economy features some aspects that are associated with a boom period, although growth is low. After several years of mainland GDP growth in the order of 3-4 per cent, activity is now increasing by less than 2 per cent a year. The economy is operating near capacity limits. New working time reforms, increased use of sick pay and disability benefits and a reduced supply of labour from other Nordic countries are restraining growth in many sectors. Moreover, there is no evidence suggesting that productivity growth in Norway has picked up to the levels in some of our neighbouring countries. Risk premia for private companies in the US Percentage points 6  6  4  4 High risk  2  0  Medium risk  Low risk  2  0  1993 1994 1995 1996 1997 1998 1999 2000 2001  International equity prices declined sharply last autumn. In the US, output and employment are stagnating.
BIS Review 14/2001  7  The government’s asset position and wealth management  Government assets and liabilities Estimates in billions of NOK Assets  Liabilities  Petroleum Fund National Insurance Fund  390  Direct ownership  300  Bonds and Treasury bills  170  50  Minor holdings  100  State banks  165  The table shows in simplified form the central government’s financial assets and liabilities, with estimates for the balance at the end of 2000. The government’s most important assets are the Government Petroleum Fund, assets in the National Insurance Fund, and the state’s direct ownership interests in enterprises. The estimate for the government’s direct ownership in the table includes Statoil, Norsk Hydro, Telenor, Statkraft and DnB. In addition, the state has many smaller stakes and direct loans through the state banks. The government has loan debt. In the table, the figures for the National Insurance Fund are consolidated as the Fund’s claims on the central government and the central government’s debt to the Fund are offset. The table shows that the central government’s loans through the state banks are approximately the same as the central government’s loan debt. The central government raises loans in the bond market and lends through the state banks. The interest rate on the loans and the pricing of risk are market-related. If we exclude this credit intermediation, the management of government wealth is primarily linked to state ownership interests in the Norwegian business sector, the National Insurance Fund and the Government Petroleum Fund.