Norwegian economic growth likely to reach nearly 2 pct in 2017, to remain on track in 2018

Norwegian economy has suffered due to fall in oil prices between 2014 and 2016. Oil and gas extraction accounts for around 15 percent of the gross value added. But the economic growth has rebounded strongly at the start of this year, owing to a weaker krone, low interest rates and an expansionary fiscal policy.

The Norwegian economic growth is expected to reach almost 2 percent in 2017 after it rose 1 percent in the previous year. Also, the economic growth is likely to remain widely on track next year, noted BNP Paribas in a research report.

Norway is likely to advance from favorable conditions in the euro area and in Sweden, its main trading partners. Furthermore, petroleum investment is likely to bottom out in 2017 and rise in 2018 consistent with the rise in oil prices. Meanwhile, job creations are expected to continue. Along with a rise in wages, they should support private consumption, added BNP Paribas.

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