Norway Economic Outlook
September 1, 2020The economy contracted at a record pace in Q2, with the full effect of lockdown measures imposed in mid-March hitting activity hard. The domestic economy led the downturn amid tumbling household spending and faltering fixed investment. Growth in the external sector softened the overall result somewhat, although this was chiefly driven by a sharp drop in imports, likely reflecting subdued domestic demand. However, the quarterly result suggested an uptick in activity toward the end of the quarter, with monthly GDP in June posting a marked expansion as consumer spending returned: Retail sales in June grew 14%, the fastest rate in over three decades. Turning to Q3, the easing of lockdown measures and a relatively low rate of domestic Covid-19 cases bode well for a continued recovery, with high-frequency data for July and August indicating retail activity has returned to pre-pandemic levels.
Norway Economic GrowthThe economy is set to contract this year due to diminished household spending and fixed investment amid heightened uncertainty. However, a boost in government spending should temper the downturn somewhat. The prolonged nature of the pandemic and its impact on key external markets continue to weigh on the outlook. FocusEconomics Consensus Forecast panelists estimate total GDP contracting 4.8% in 2020, which is down 0.1 percentage points from last month’s forecast, before expanding 3.6% in 2021. Furthermore, our panelists see mainland GDP contracting 4.1% in 2020, which is up 0.4 percentage points from last month’s projection, before increasing 3.9% in 2021.
Norway Economy Data
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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
September 10, 2020
Consumer prices fell 0.35% in August over the previous month, swinging from July's 0.71% increase.
September 8, 2020
Economic output grew 1.1% over the prior month in July in seasonally-adjusted terms, slowing from the 3.1% expansion in June but marking the third consecutive month of growth.
September 7, 2020
Industrial output grew 2.5% month-on-month in seasonally-adjusted terms in July (June: -1.8% mom).
August 25, 2020
GDP declined at the steepest ever recorded rate in the second quarter, dropping 5.1% on a seasonally-adjusted quarter-on-quarter basis, according to data released by Statistics Norway on 25 August.
August 20, 2020
At its monetary policy meeting on 20 August, the Executive Board of Norges Bank unanimously decided to maintain the sight deposit rate at 0.00%, as it had done at the previous meeting in June.