Nordic Economies Economic Outlook
The Nordic region should avoid a GDP decline this year thanks to robust economic performances from Denmark, Iceland and Norway more than offsetting contractions in Finland and Sweden. Downside risks include stickier-than-expected inflation leading to longer and more aggressive monetary policy tightening cycles, and sharp housing market corrections.
Nordic Economies Inflation
Regional inflation cooled to 7.9% in March (February: 8.7%) as price pressures moderated across the region—barring in Norway, where inflation ticked up mildly. Inflation should continue to soften through 2023 but will remain well above central banks’ targets nevertheless. Currency volatility and fluctuations in energy prices are risks.
This chart displays Economic Growth (GDP, ann. var. %) for Nordic Economies from 2010 to 2022.
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| GDP per Capita (USD) | 57,645 | 60,807 | 57,849 | 56,926 | 66,890 |
| Economic Growth (GDP, ann. var. %) | 2.8 | 1.6 | 1.5 | -2.1 | 4.4 |
| Private Consumption (ann. var. %) | 2.2 | 2.1 | 1.0 | -3.6 | 4.9 |
| Fixed Investment (ann. var. %) | 4.6 | 2.6 | 1.8 | 0.5 | 3.4 |
| Industrial Production (ann. var. %) | 3.3 | 2.2 | 0.4 | -2.6 | 5.8 |
| Unemployment (% of active population, aop) | 6.2 | 5.6 | 5.6 | 6.8 | 6.6 |
| Fiscal Balance (% of GDP) | 2.1 | 2.4 | 2.6 | -2.6 | 3.0 |
| Public Debt (% of GDP) | 43.7 | 42.7 | 41.7 | 48.2 | 44.5 |
| Inflation (CPI, ann. var. %, aop) | 1.5 | 1.8 | 1.6 | 0.7 | 2.5 |
| Policy Rate (%, eop) | -0.22 | -0.13 | 0.27 | -0.17 | 0.00 |
| Exchange Rate (LCU per USD, eop) | 9.5 | 10.2 | 10.6 | 9.7 | 10.3 |
| Current Account Balance (% of GDP) | 4.1 | 4.3 | 4.5 | - | - |
| Merchandise Exports (USD bn) | 337 | 378 | 356 | 320 | 453 |
| Merchandise Imports (USD bn) | 302 | 331 | 315 | 295 | 363 |