Norway Current Account Balance (EUR bn)

Sequential economic growth lost notable steam in Q4 2022; total GDP grew 0.2% quarter on quarter. Conversely, the mainland economy expanded by a stronger 0.8%. Looking at monthly data, December’s total GDP growth more than compensated for November’s flat reading and October’s contraction. In Q4, overall growth was weighed down by the external sector; domestic demand was surprisingly resilient against tighter monetary policy and elevated inflation. Private consumption expanded robustly, bolstered by stronger nominal wage growth and higher employment numbers. Underlying momentum should be slowing further in Q1; the economy is expected to grow only marginally. Headline inflation accelerated more than expected in January, and core inflation hit the highest level since at least 2003, likely paving the way to further monetary policy tightening ahead.