The latest data on monetary aggregates released by Norges Bank, Norway’s central bank, reveals a sluggish growth in the total money supply M3 over the past twelve months leading up to May 2023.
According to the report, the twelve-month growth in the total money supply M3 from May 2022 to May 2023 was recorded at 2.2 per cent. This indicates a slight increase in the overall money supply within the Norwegian economy.
A closer look at the components of M3 shows varying trends across different sectors. The money holding sector experienced a meager growth rate of only 2.2 per cent in May 2023. Similarly, households and other private entities witnessed a slow increase in their monetary holdings, with a growth rate of 2.5 per cent.
In contrast, non-financial corporations had a more substantial twelve-month growth rate of 1.8 per cent in May 2023. This suggests that the business sector has been accumulating money at a relatively higher pace compared to other sectors.
Surprisingly, municipal governments experienced a significant surge in their monetary holdings, with a growth rate of 10.5 per cent in May 2023. However, it’s essential to interpret this data with caution as the sharp increase could be influenced by specific localized factors.
On the downside, other financial corporations, such as banks and financial institutions, faced a decline in their monetary holdings. The twelve-month growth rate for this sector was reported at -4.7 per cent in May 2023. This might indicate a decrease in lending or investment activities within the financial industry.
Overall, the latest report on monetary aggregates suggests that while the total money supply in Norway has seen some growth, it remains relatively subdued, reflecting cautious economic sentiments. The Norges Bank is expected to closely monitor these developments in the coming months to assess the need for any monetary policy adjustments to stimulate economic growth.
https://www.ssb.no/en/bank-og-finansmarked/finansielle-indikatorer/statistikk/pengemengde