Scandinavian American. [volume] (Seattle, Wash.) 1945-1958, 1951-02-23
Norway
Norway's Economy

national economy in 1851. Known
as the National Budget, Norway's
economic blueprint counts ON in
creased production to offset the
doubled cost of defense and the
effect of world initiation on a ma
ton largely depending upon i'm
ports. There is general belt
tightening all along the line,
coupled with maximum efforts to
speed up defense preparations.
The volume of the national pro-
duct is estimated to increase 2
2.5Gt above that of 1850, while the
value of total products and SER
vices will rise by go, from 1852
million kroner to 1889 million.
These calculations assume higher
output per worker, ample supplies
of raw materials and full employ
ment. ALLEGATION of critical mater
ialS, such as zinc, aluminium, cop
per, and miscellaneous alloys, will
be continued, and more items add
ed as required. In addition, there
will still be rationing of scarce con-
sumers' goods, mainly imports.
Industrial Output Up 1000
With the exception of home and
plant construction, the various
fields of national production are
estimated to register substantial
increases in 1851. Industry is eX-
pected to produce a gross value of
5,575 million kroner, a boost of
500 million above last years 5,O75
million.
The National Budget figures
with sharp drop in Marshall
Plan aid, from LOO million kroner
in 1850 to 700 million this year.
The cost of goods and services
spent on national defense will in
crease by 200 million kroner, to
reach a total of 563 million, COM
pared with 378 million last year.
while consumers consumption will
be cut between so and 100 million
kroner in volume, though it's value
will rise by about 274 million.
AS a further move to strength
en- the preparedness program, CT
william capital investments are
slated to be cut by 80 million
kroner, while defense investments
will be increased by 80 million
The ratio of civilian investments
to the national product will be re-
duced by 1870 compared with 1850.
Hardest hit will be home and
plant construction, industry, and
agriculture. Investments in motor
lied transport will be boosted by
144 million kroner.
Estimates of Norwegian exports
in 1851, including ships, are set
at 3,210 million, an increase of 305
million above 1850. Total imports,
including ships, and 100 million for
defense, are figured to reach 5000
million kroner, compared with
1900 million in 1850.
Shipping's contribution to tn e
balance of payments is expected
to increase from 518 million kron-
er in 1850 to $50 million in 1851
OF the latter amount b o u $40
million will be available in for
eign exchange.
The foreign trade deficit of
goods and services is estimated at
$50 million kroner. Adding PAS
million for foreign loan interest
payments and reductions, the ma
tional budget arrives at an esti-
mated payment balance deficit of
99S million, a drop of 100 million
compared with the lips million
deficit in 1850. Two-thirds of 1851
deficit will be covered by direct
and indirect Marshall Aid, and the
balance by loans.
Summarizing the adverse fac
tors hampering Norway's remark
able postwar recovery, the Gov
eminent report says:
These conditions make it more
necessary than ever before that
We "a increase production, (2)
concentrate investments on pro-
jects which will help to solve the
nations foreign trade problems,
80 make it possible to switch
manpower to the production of es-
sential goods, and "a improve the