Norway GDP (EUR bn)

Economy declines in January

GDP declined 0.2% over the prior month in seasonally adjusted terms in January, contrasting December’s 0.3% increase. Meanwhile, the economy flatlined in the rolling quarter of November–January relative to the previous rolling quarter (August–October). This was an improvement from the 0.7% contraction tallied in October–December.

Similarly, mainland GDP—which excludes hydrocarbons and related services—also clocked a 0.2% decline in January, deteriorating from the 0.3% expansion recorded in December. During the three months to December, the mainland economy rose 0.2%, with growth halving from the 0.4% recorded in October–December.

Domestically, private consumption was the main driver behind the monthly downturn; it plunged 10.7% in January, contrasting December’s 6.1% growth markedly. Similarly, fixed investment declined a seasonally adjusted month on month 2.1% in January (December: +0.5% s.a. mom). Conversely, government spending accelerated to 0.3% (December: +0.2% s.a. mom).

Turning to the external sector, exports of goods and services declined 1.3% in January, deteriorating from the prior month’s 1.7% growth. Meanwhile, imports of goods and services contracted a sharper 3.0% in January (December: -0.3% s.a. mom).