Norway: Economy bounces back in May
July 7, 2022
Economic output rebounded in May, as GDP expanded 0.4% over the prior month in seasonally-adjusted terms, swinging from the 0.4% decline recorded in April. Meanwhile, the economy grew 0.9% in the rolling quarter of March–May relative to the previous rolling quarter (December–February). The expansion came in below the 1.3% growth logged in February–April.
Mainland GDP—which excludes hydrocarbon extraction and related services—contracted 0.2% in May. The result was a mild improvement from the 0.3% decline clocked in April. In the rolling quarter of March–May, the mainland economy grew 0.7% from the previous quarter (December–February), a deterioration from the 1.5% expansion recorded in February–April.
Domestically, the monthly upturn was spearheaded by a rebound in fixed investment, which grew 2.1% in May (April: -5.1% s.a. mom). Meanwhile, government spending growth moderated to 0.1%, a softer expansion than the 1.0% growth clocked in the prior month. Lastly, private spending swung to a contraction in May, declining 0.5% (April: +0.7% s.a. mom).
Turning to the external sector, exports of goods and services returned to growth, clocking in a 4.0% monthly expansion in May (April: -6.7% s.a. mom). Similarly, imports of goods and services also rebounded (May: +3.4% s.a. mom; April: -3.0% s.a. mom).
Author: Marta Casanovas , Economist