In the third quarter, total GDP fell a seasonally adjusted 0.8% over the previous period, which contrasted the 1.0% rise recorded in Q2 (previously reported: +1.5% quarter-on-quarter). The print marked, in fact, the steepest decline suffered since Q3 2010. According to the statistical institute, total GDP was dragged down by a sharp contraction in petroleum activities and ocean transport mainly due to planned maintenance, technical problems and strikes. On an annual basis, total GDP decelerated from a 4.7% rise in the second quarter to a 1.2% increase in the third, which marked the weakest expansion since Q2 2011. Meanwhile, Norway mainland's GDP - which consists of all domestic production activity except for extraction of crude oil and natural gas (including related services), pipeline and ocean transport - rose a seasonally adjusted 0.7% over the previous quarter. The reading came in slightly below the 0.8% expansion recorded in the second quarter (previously reported: +1.0% qoq) but overshot the 0.5% increase expected by the market. Compared to the same period last year, the mainland economy grew 2.6% in the second quarter, which is down from the 3.3% increase tallied in the previous period. Private consumption inched up to 0.8% growth (Q2: +0.7% qoq), while government spending decelerated markedly to a 0.2% rise (Q2: +1.2 qoq). Meanwhile, gross fixed capital investment remained broadly stable and expanded at a 0.9% pace (Q2: +1.0% qoq). Exports of goods and services deteriorated as a result of lower shipments of oil and gas, falling a seasonally adjusted 3.1% over the previous three-month period (Q2: +0.5% qoq). On the other hand, imports expanded 1.1%, following an increase of 1.4% in the second quarter. As a result, the external sector's net contribution to overall growth fell from minus 0.2 percentage points in the second quarter to minus 1.5 percentage points in the third.
Petroleum activities drag down overall activity
November 20, 2012
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Norway GDP Chart
Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Statistics Norway (SN) and FocusEconomics Consensus Forecast.
Norway Economic News
October 10, 2016
In September, consumer prices climbed 0.3% from the previous month, which contrasted August’s reading (-0.5% month-on-month) but undershot market expectations of a 0.7% increase.
October 7, 2016
In August, industrial production decreased 4.7% over the previous month in seasonally-adjusted terms, which contrasted the 4.7% expansion recorded in July and marked the lowest reading since April 2015.
September 22, 2016
At its 21 September policy meeting, Norges Bank (NB) decided to leave its key policy rate at the all-time low of 0.50%, as was expected by market participants. Norges Bank noted that global growth was moderate and that in the medium term import demand from its main trading partners will be lower than previously expected.
September 9, 2016
In August, consumer prices dropped 0.5% over the previous month, which contrasted July’s reading (+0.6% month-on-month) and undershot market expectations of a 0.4% drop.
September 7, 2016
In July, industrial production expanded 5.5% over the previous month in seasonally-adjusted terms, which marked a rebound from the 4.7% fall recorded in June and represented the highest reading since October 2012.