Norway: Economy returns to growth in July
September 8, 2022
Economic growth returned in July, as GDP expanded 0.3% over the prior month in seasonally adjusted terms, swinging from the 0.5% decline recorded in June. Meanwhile, the economy grew 0.2% in the rolling quarter of May–July relative to the previous rolling quarter (February–April). It contrasted with the 0.5% decline logged in April–June.
Mainland GDP—which excludes hydrocarbon extraction and related services—contracted 0.3% in July, a deterioration from June’s 0.3% expansion. During the three months to July, the mainland economy declined 0.1% from the previous rolling quarter (February–April), a slight improvement from the 0.2% contraction recorded in April–June.
Domestically, there was a broad-based deterioration. Government spending clocked a 0.7% decline in July, having flatlined in June. Moreover, private consumption logged a 1.5% contraction in July, contrasting with June’s 0.3% expansion. Lastly, fixed investment contracted by a sharper 1.6% in July, compared with June’s 0.8% decline.
The external sector was the engine of growth: Exports of goods and services rebounded in July, expanding by a seasonally adjusted 1.1% month on month (June: -3.3%). Conversely, imports of goods and services declined at a milder 0.7% in July (June: -0.8% s.a. mom).
Author: Marta Casanovas , Economist