Norway skyline at night

Norway GDP Q4 2017

Norway: Economy contracts in the fourth quarter on lower oil and gas output

In the fourth quarter of 2017, the economy shrank a seasonally-adjusted 0.3% from the previous quarter, below both market analysts’ expectations of a 0.6% quarter-on-quarter expansion and the third quarter’s revised growth of 0.8% (previously reported: +0.7% quarter-on-quarter). The sudden downturn was due to deteriorated conditions in the offshore oil and gas sector: Output in the sector contracted 4.7% in Q4 compared to growth of 1.2% in Q3. On the other hand, the mainland economy, which excludes petroleum activities and related ocean transport, experienced broadly stable growth of 0.6% in the fourth quarter (Q3: +0.7% qoq; previously reported: +0.6% qoq).

In year-on-year terms, the economy lost steam in the fourth quarter, as growth slowed from a revised 3.4% in the third quarter (previously reported: +3.2% year-on-year) to 1.4%. Taken separately, however, the mainland economy performed well, growing 2.7% in Q4 compared to 2.0% in Q3.

In line with rising consumer confidence and employment, household consumption growth accelerated to 0.8%, up from Q3’s 0.6% expansion. Government consumption growth slowed, however, from Q3’s revised 0.7% expansion (previously reported: +0.5% qoq) to 0.5% in Q4. Fixed investment, which benefited from government investment in new combat aircraft, swung to an expansion of 1.6% in Q4, up from a revised contraction of 0.9% in Q3 (previously reported: -0.3% qoq).

The external sector was primarily behind the quarter-on-quarter downturn in Q4. As shipments of oil and gas plummeted, exports shrank 2.6%, deepening Q3’s revised 0.8% contraction in exports (previously reported: +0.9% qoq). Imports, on the other hand, expanded 3.2% in Q4, up from the revised contraction of 3.3% in Q3 (previously reported: -1.8% qoq). Consequently, the external sector detracted 2.0 percentage points from growth in the quarter, compared to a contribution of 0.8 percentage points in Q3.

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