GDP in Norway
Norway - GDP
The economy expands at an accelerated pace in May
Economic output increased 0.4% in May compared to the previous month in seasonally-adjusted terms, up from April’s revised 0.3% increase (previously reported: +0.2% month-on-month). In the rolling quarter March–May period, the total economy recorded an expansion of 0.4% from the previous quarter, up from February-April’s revised 0.1% increase (previously reported: flat growth).
Mainland GDP—which excludes hydrocarbon extraction activity and related transport—expanded 0.3% in May from the previous month in seasonally-adjusted terms, down from April’s revised 0.4% expansion (previously reported: +0.3% month-on-month). In March–May, mainland GDP jumped 0.7% from the previous rolling quarter, up from 0.4% in February–April.
In May, private consumption fell 0.1% in seasonally-adjusted month-on-month terms, up from the 0.5% decrease recorded in April. These two months of declining consumer spending followed a sharp increase in March, so a high base effect that month seems to have weighed on the expenditure category’s consequent growth. The unemployment rate actually fell to 3.2% in April, the most recent month for which data is available, marking a near seven-year low.
Government consumption, meanwhile, rose 0.1% in May, contrasting the 0.3% fall in April. Fixed investment rose 4.2% in May, down slightly from the 5.8% increase in April. Investment was particularly strong in the mainland economy in May. The external sector had a rocky month in May, as export growth was flat, down from April’s 1.5% increase, while imports fell 1.8%, contrasting April’s 1.3% rise.
In terms of the outlook, the economy is seen accelerating in 2019 versus 2018, as it benefits from strong hydrocarbon investment, while average wage growth is expected to outstrip inflation, supporting private consumption. The government also expects its budget for the year to be marginally simulative to the economy. The main downside risks to growth come from global trade protectionism, Brexit and a slowdown in Europe.
FocusEconomics Consensus Forecast panelists see total GDP expanding 1.9% in 2019, which is down 0.1 percentage points from last month’s forecast. For 2020, our panelists expect growth of 2.0% again. In terms of mainland GDP, our panelists forecast an expansion of 2.4% in 2019, which is unchanged from last month’s forecast, and 1.9% in 2020.
Norway - GDP Data
|Economic Growth (GDP, annual variation in %)||1.0||2.0||2.0||1.2||2.0|
5 years of economic forecasts for more than 30 economic indicators.
Norway GDP Chart
Source: Statistics Norway and FocusEconomics calculations.
|Bond Yield||1.35||-0.65 %||Jul 31|
|Exchange Rate||8.86||-0.38 %||Jul 31|
|Stock Market||859||-0.08 %||Jul 31|
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August 15, 2019
The executive board of Norges Bank unanimously decided to keep the sight deposit rate unchanged at 1.25% at its monetary policy meeting on 15 August.
August 9, 2019
Consumer prices jumped 0.7% in July, up from June’s 0.1% increase.
August 8, 2019
Industrial production declined a seasonally-adjusted 1.4% in June from the previous month, contrasting May’s 0.6% increase.
July 10, 2019
Consumer prices ticked up 0.1% in June, contrasting the 0.3% decrease posted in May.
July 9, 2019
Economic output increased 0.4% in May compared to the previous month in seasonally-adjusted terms, up from April’s revised 0.3% increase (previously reported: +0.2% month-on-month).