Norway: Economy declines in January
Economic output decreased 1.6% over the prior month in seasonally-adjusted terms in January, worsening from the flat reading posted in December. Meanwhile, the economy contracted 1.3% in the rolling quarter of November–January relative to the previous quarter (August–October), coming in below the flat reading logged in October–December.
Mainland GDP—which excludes hydrocarbon extraction and related services—fell 0.9% in January, which was a deterioration from December’s 0.7% drop. In the rolling quarter of November–January, the mainland economy expanded 0.2% from the previous rolling quarter (August–October), easing markedly from the 1.4% growth recorded in October–December.
Domestically, the downturn was due to fixed investment dropping to a seasonally-adjusted month-on-month 5.4% contraction in January, swinging from December’s 7.7% increase. Meanwhile, private consumption declined at December’s rate of 3.3% in January. This, more than offset government spending returning to an expansion in January, with growth coming in at 0.6% (December: -0.6% s.a. mom).
Turning to the external sector, exports of goods and services swung to an 8.3% contraction in January (December: +1.0% s.a. mom). Conversely, imports of goods and services declined at a milder rate of 2.0% over the prior month in January, uo from December’s -6.0%.