Consumption in Norway
Norway - Consumption
Economic growth eases slightly in July
Economic output increased 0.7% over the prior month in seasonally-adjusted terms in July, easing from the 0.9% expansion recorded in June. Meanwhile, the economy grew 2.2% in the rolling quarter of May–July relative to the previous quarter (February–April), coming in markedly above the 1.1% expansion logged in April–June.
Mainland GDP—which excludes hydrocarbon extraction and related services—rose 0.4% over the prior month in July, down from the 0.8% increase clocked in June. In the rolling quarter of May–July, the mainland economy grew 2.5% from the previous rolling quarter (February–April), improving from the 1.4% expansion registered in April–June.
Domestically, July’s slowdown was due to fixed investment dropping back to a contraction over the previous month (July: -1.4% s.a. mom; June: +1.8% s.a. mom). Moreover, government spending growth eased to 0.1% in July from 0.4% in June. More positively, private consumption expanded 2.6% in July, improving from June’s 2.0% growth.
Meanwhile, the external sector contributed positively to the overall reading, with growth in exports of goods and services accelerating to 1.8% in July from 1.2% in June. Conversely, imports of goods and services swung back to contraction in the same month (July: -3.5% s.a. mom; June: +1.2% s.a. mom).
Reflecting on the role consumers will play in the recovery and what the consumption trend will look like ahead, Lina Fransson, economist at SEB, noted:
“The recovery is now being led by strong households with support from fiscal stimulus. […] We now foresee a clear shift in consumption. Historically high savings, lower unemployment, unexpectedly strong wage growth and pent-up needs suggest a strong recovery in service consumption, which remains more than 10.0% lower than before the Covid-19 crisis.”
FocusEconomics Consensus Forecast panelists see total GDP growing 3.1% in 2021, which is down 0.1 percentage points from last month’s forecast, and expanding 3.0% in 2022. In terms of mainland GDP, our panelists project growth of 3.7% in 2021, which is unchanged from last month’s estimate, and 3.6% in 2022.
Norway - Consumption Data
|Consumption (annual variation in %)||2.7||1.1||2.2||1.9||1.5|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.58||-0.65 %||Jan 01|
|Exchange Rate||8.78||-0.38 %||Jan 01|
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September 23, 2021
At its monetary policy meeting on 22 September, the Executive Board of Norges Bank unanimously voted to raise the sight deposit rate to 0.25% from the record low of 0.00%—where it had been since May last year.
September 10, 2021
Consumer prices were unchanged over the previous month in August, following the 0.87% price increase recorded in July.
September 9, 2021
Economic output increased 0.7% over the prior month in seasonally-adjusted terms in July, easing from the 0.9% expansion recorded in June.
September 7, 2021
Industrial production growth flatlined month-on-month in seasonally-adjusted terms in July (June: +1.0% mom).
August 31, 2021
Norwegians are gearing up to head to the polls on 13 September to elect a new parliament.