Norway growth stronger than expected – Nordea

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Erik Johannes Bruce, chief analyst at Nordea, has said that latest growth figures reported for Norway are stronger than expected.
Construction, manufacturing, retail and electricity production all contributed to the strong growth, Bruce noted.
“The only downside surprise was a rather modest growth in private services outside the retail sector. The demand side was also rather strong with strong growth in private consumption and not that bad growth in (mainland) private investments. Exports were strong but that was probably temporary effect of electricity exports,” Bruce said.
However, he added a note of caution: “Remember the effect of the likely drop in oil investment is still not affecting the figures (but the levelling out should and it is hard to understand the strength in manufacturing). If one are to look after figures more in line with Norges Bank’s view it must be employment which grew by 0.3% q/q. Still no doubt, today’s figure points to a higher interest rate path at the September meeting.”
The data suggests that Norwegian mainland GDP was up 1.2% in the second quarter against Nordea’s expectations of 0.9%, and consensu of 0.6% for the period.
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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