Norway: Economic decline softens in November
January 12, 2022
Economic output decreased 0.3% over the prior month in seasonally-adjusted terms in November, moderating from the 0.8% contraction recorded in October. Meanwhile, the economy grew 2.5% in the rolling quarter of September–November relative to the previous quarter (June–August), coming in below the 3.4% expansion logged in August–October.
Mainland GDP—which excludes hydrocarbon extraction and related services—expanded 0.7% in November, improving from October’s flat reading. In the rolling quarter of September–November, the mainland economy grew 1.9% from the previous rolling quarter (June–August), cooling from the 2.3% increase recorded in August–October.
Domestically, fixed investment growth accelerated to 1.1% in seasonally-adjusted month-on-month terms from October’s 0.7% increase. Additionally, private consumption grew at a quicker pace of 1.2% in November (October: +1.1% s.a. mom). Lastly, government spending swung back to growth, clocking in a mild 0.1% increase (October: -0.1% s.a. mom).
Turning to the external sector, it detracted from overall growth, though exports of goods and services shrank at a more moderate pace of 1.4% month-on-month in November (October: -2.6% s.a. mom). Meanwhile, imports of goods and services returned to growth, increasing 3.1% month-on-month (October: -1.0% s.a. mom).
Author: Marta Casanovas , Economist