Norway skyline at night

Norway GDP July 2021

Norway: Economic growth eases slightly in July

Economic output increased 0.7% over the prior month in seasonally-adjusted terms in July, easing from the 0.9% expansion recorded in June. Meanwhile, the economy grew 2.2% in the rolling quarter of May–July relative to the previous quarter (February–April), coming in markedly above the 1.1% expansion logged in April–June.

Mainland GDP—which excludes hydrocarbon extraction and related services—rose 0.4% over the prior month in July, down from the 0.8% increase clocked in June. In the rolling quarter of May–July, the mainland economy grew 2.5% from the previous rolling quarter (February–April), improving from the 1.4% expansion registered in April–June.

Domestically, July’s slowdown was due to fixed investment dropping back to a contraction over the previous month (July: -1.4% s.a. mom; June: +1.8% s.a. mom). Moreover, government spending growth eased to 0.1% in July from 0.4% in June. More positively, private consumption expanded 2.6% in July, improving from June’s 2.0% growth.

Meanwhile, the external sector contributed positively to the overall reading, with growth in exports of goods and services accelerating to 1.8% in July from 1.2% in June. Conversely, imports of goods and services swung back to contraction in the same month (July: -3.5% s.a. mom; June: +1.2% s.a. mom).

Reflecting on the role consumers will play in the recovery and what the consumption trend will look like ahead, Lina Fransson, economist at SEB, noted:

“The recovery is now being led by strong households with support from fiscal stimulus. […] We now foresee a clear shift in consumption. Historically high savings, lower unemployment, unexpectedly strong wage growth and pent-up needs suggest a strong recovery in service consumption, which remains more than 10.0% lower than before the Covid-19 crisis.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest