Norway Economic Outlook
March 3, 2020Economic growth accelerated to a three-year high in the fourth quarter of last year, driven by a surge in exports—due to the state-owned Johan Sverdrup oilfield coming online in October. That being said, fixed investment eased, while private consumption flatlined in Q4. This follows a soft Q3 and likely suggests the Norges Bank’s two policy rate increases in 2019 are cooling domestic demand. Turning to the first quarter of this year, the Johan Sverdrup continues to ramp up production levels, which should support the external sector. However, depressed oil and gas prices due to the coronavirus could weigh on oil investment. Moreover, retail sales declined sharply in January in year-on-year terms, despite solid labor and credit dynamics, while business confidence hit an over three-year low in Q4 due to weaker output levels and production expectations for Q1.
Norway Economic GrowthGrowth is expected to accelerate this year as strong labor market fundamentals and investment in the Balder X offshore oilfield project support domestic demand, while greater output from the Johan Sverdrup oil platform should propel the energy sector. Nonetheless, a tight monetary stance and weak growth in the Eurozone will likely keep momentum in check. FocusEconomics Consensus Forecast panelists see total GDP expanding 2.1% in 2020, which is unchanged from last month’s forecast, and 1.7% in 2021. In terms of mainland GDP, our panelists see growth of 1.8% in 2020, which is unchanged from last month’s projection, and 1.7% in 2021.
Norway Economy Data
5 years of Norway economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.58||-0.65 %||Jan 01|
|Exchange Rate||8.78||-0.38 %||Jan 01|
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Norway Economic News
March 27, 2020
On 20 March, after Norges Bank cut rates by an unprecedented 75 basis points, the krone ended the day at 12.57 per EUR, marking a record low.
March 20, 2020
The Executive Board of Norges Bank unanimously decided to slash the sight deposit rate to 0.25% from 1.00% at its unplanned monetary policy meeting on 19 March.
March 10, 2020
Consumer prices fell 0.1% in February, following January’s flat reading.
March 6, 2020
Industrial production decreased a seasonally-adjusted 2.3% in February over the previous month, which was down from December’s downwardly revised 1.4% rise (previously reported: +1.5% month-on-month). January’s fall was driven by a contraction in the extraction and related services sector, which accounts for around 65% of industrial production in Norway, as temporary shutdowns in key oil fields weighed on production.
February 10, 2020
Consumer prices were flat in January, following up December’s 0.3% fall.