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.
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