Nordic Economies Economic Outlook
Interest rate cuts and healthy real wage growth will underpin faster momentum in the Nordics’ economy in 2025 compared to 2024. Still, tighter fiscal policy and rising U.S. protectionism should remain headwinds across most of the region. Investor sentiment, housing prices, the health of the EU economy and the extent of global tariff hikes are key risk factors.
Nordic Economies Inflation
In January, inflation fell in Denmark and Iceland but increased in Finland, Norway and Sweden. Healthier domestic demand and interest rate cuts should drive inflation up toward target in Finland, Denmark and Sweden in 2025. In Norway and Iceland, inflation will ease from 2024 but remain above target. Energy prices and U.S. tariffs are factors to watch.
This chart displays Economic Growth (Real GDP, ann. var. %) for Nordic Economies from 2010 to 2024.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| GDP per Capita (USD) | 56,805 | 67,665 | 67,880 | 64,439 | 65,909 |
| Economic Growth (Real GDP, ann. var. %) | -2.1 | 5.1 | 2.1 | 0.6 | 1.7 |
| Private Consumption (annual variation in %) | -3.5 | 5.4 | 3.2 | -0.7 | 0.6 |
| Investment (annual variation in %) | 0.3 | 5.2 | 1.3 | -3.4 | -1.9 |
| Industrial Production (ann. var. %) | -1.9 | 5.8 | 3.8 | 1.9 | 3.1 |
| Unemployment (% of active population, aop) | 6.6 | 6.3 | 4.9 | 5.3 | 5.9 |
| Fiscal Balance (% of GDP) | -2.7 | 3.1 | 9.0 | 4.5 | - |
| Public Debt (% of GDP) | 49.3 | 45.0 | 41.1 | 43.4 | - |
| Inflation (CPI, ann. var. %, aop) | 0.7 | 2.5 | 7.2 | 5.9 | 2.3 |
| Policy Interest Rate (%, eop) | -0.23 | -0.08 | 2.34 | 4.04 | 3.22 |
| Merchandise Exports (USD bn) | 191 | 230 | 249 | 258 | 264 |
| Merchandise Imports (USD bn) | 170 | 215 | 241 | 220 | 219 |
| International Reserves (USD bn) | 72 | 79 | 81 | 79 | 81 |