Norway: The economy wobbles in August, but remains on a strong growth trajectory
October 9, 2018
According to monthly GDP data released by Statistics Norway, the total economy contracted 0.1% in August over the previous month in seasonally-adjusted terms, matching July’s revised reading (previously reported: -0.2% month-on-month). However, in the June–August period, the total economy expanded a solid 1.1% over the previous rolling quarter, up from 0.9% in March–May.
Mainland GDP—which excludes hydrocarbon extraction activity and related transport—fell a seasonally-adjusted 0.2% in August over the previous month, contrasting the revised 0.3% expansion in July (previously reported: +0.2% month-on-month). Mainland GDP rose 0.6% in June–August, down from 0.8% in March–May.
On an expenditure-basis, the economy had a mixed performance in August. Private consumption growth from the previous month was feeble, largely due to a decrease in spending on goods. Government consumption grew at the same pace in August as it did in July. Meanwhile, fixed investment decreased, contrasting strong growth in July. The external sector, however, performed strongly in August, as exports increased and imports decreased.
In term of production activity, the economy was hit by the drought in August, which weighed on the agriculture sector. Together with the fisheries sector, these two areas of production deducted almost 0.5 percentage points off mainland economic growth in August.
Author: Edward Gardner, Economist