Following a marginal GDP expansion in Q4, conditions grew more challenging at the outset of 2023. GDP slid 0.2% month on month in January. Private consumption plunged by over 10% in the month, marking the sharpest downturn since the outbreak of the pandemic in March 2020. Moreover, in January, the unemployment rate increased to a 14-month high and price pressures intensified, contributing to household spending’s retreat. Meanwhile, imports of goods and services contracted at a steeper pace than in December. Fixed investment also swung to a contraction, which more than offset a marginal uptick in public spending growth. Lastly, exports of goods and services declined in January. Furthermore, in February, the manufacturing PMI fell to a 30-month low as conditions deteriorated markedly. In late March, Norges Bank increased interest rates further, boding ill for credit and investment.
Norway Foreign Direct Investment (EUR bn) Data
2017 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|
Foreign Direct Investment (EUR bn) | -5.2 | 0.2 | 14.9 | -1.2 | -1.4 |