cent of growth in the labour force in norway. at the same time, this has enabled norwegian companies to be bolder in accepting new assignments and investing knowing that they can procure labour throughout europe. in addition to increased labour inflows from poland, lithuania and other central european countries, we have long benefited from inflows of labour from sweden. many workers are on temporary assignment and their consumption is primarily concentrated in their home country. the norwegian economy has seen a net capacity increase. third, the norwegian business sector has been quick to integrate new technology. this applies both to companies competing on international markets and those supplying goods and services to the domestic market. in comparison with other countries, it is particularly productivity gains in banks and other service sectors that stand out. examples are automated processes and swifter payments in the financial industry and improved inventory and management systems in commerce and transport. this results in lower production costs. the strong growth in labour productivity does not seem to reflect an increase in the real capital behind each person - hour worked, but rather a considerable improvement in labour and capital efficiency. 2 intensified competition in product markets may have contributed to the subdued rise in prices. new operators have entered markets that were previously fairly sheltered from competition, for example in the grocery trade, building materials, telecommunications, banking and insurance. with general confidence that inflation will be kept in check and that petroleum revenues are only gradually phased into the economy, low import prices, high prices and good market opportunities for our export goods, an ample supply of foreign labour and high productivity growth have made it possible to combine high growth with low inflation. it is possible that some of the driving forces that have boosted the growth potential of the norwegian economy and restrained inflation may now diminish. prices for imported goods are now falling at a slower pace. the shift towards imports from low - cost countries was less pronounced in 2006 than in previous years. the rise in prices for oil and other commodities over several years has resulted in a somewhat faster rate of increase in producer and export prices among our trading partners. measured in foreign currency, prices for imported consumer goods rose in 2006. the labour market is tightening in sweden, poland and the baltic counties, which may mean that labour flows from this source may not increase as rapidly ahead. when the cyclical upturn is in a mature phase, productivity growth will normally drop back somewhat. capacity utilisation is now very high in most industries. the network of private and public enterprises with which norges bank

of the inmates, the director of the asylum, begriffenfeldt, answers : “ when the world ’ s in a whirl, then we must whirl with it ”. 13 we do not share this attitude. we must not whirl helplessly along with the world. we should take advantage of the opportunities globalisation offers, but also contribute to those changes ourselves. thank you for your attention. henrik ibsen : peer gynt. translated by peter watts. penguin books, london, 1966.