Norwegian mainland economic growth seems to have rebounded in Q4

Norway’s mainland economic growth is expected to have rebounded in the fourth quarter of 2016. According to a Nordea Bank research report, the mainland GDP growth is likely to have accelerated to 0.4 percent quarter-on-year and 1.3 percent year-on-year. In the third quarter, the mainland growth had come in at 0.2 percent quarter-on-quarter. The central bank projects the growth at 0.34 percent, whereas market expects growth to come in at 0.4 percent quarter-on-quarter.

The nation’s manufacturing production is anticipated to have dropped further in the December quarter, probably due to lower demand from the oil sector. Also, the fishery production is likely to have shrunk in the fourth quarter. Apart from this, the major production sectors are likely to have recorded positive growth and might have positively contributed to a sound 0.4 percent mainland GDP growth. If the projection by Nordea Bank is realised, it will affirm that Norway’s economic growth has rebounded in 2016 in spite of the rather weak third quarter.

The average quarterly growth of Norway in 2015 was 0.1 percent as compared with 0.4 percent in 2016. Capacity utilization and inflation is expected to stay lower than the target rate for certain years and is an unavoidable consequence of the oil downturn and not something monetary policy could totally counter, added Nordea Bank.