(Bloomberg) — Norway’s economy accelerated last quarter to its fastest pace in almost two years, backing expectations that the nation’s central bank will begin easing borrowing costs in the first quarter.
Mainland gross domestic product, which excludes Norway’s offshore energy industry, grew 0.5% from the previous three months, the most since the fourth quarter of 2022. The data published by the statistics office on Thursday included revisions to previous periods. The gain exceeds the 0.3% increase forecast by analysts in a Bloomberg survey and by Norges Bank.
Growth in several industries, including oil refining, chemicals and pharmaceuticals drove the expansion, while growth in mackerel fishing also contributed, the office said. Household consumption was little changed, it added, mainly due to lower car purchases.
The data paints a brighter picture for western Europe’s largest fossil-fuel exporter that has reported subdued output for much of the past two years, relative to 2022 levels, with high credit costs burdening spending and investment. It’s still likely to cement the outlook for Norway’s key rate to remain on hold at a 16-year high until March.
The development also underscores divergent trends in the region. The output of Denmark and Finland similarly extended recent gains, but Sweden stands in contrast. The largest economy in the Nordic region unexpectedly continued to contract in the quarter, according to preliminary data.
–With assistance from Joel Rinneby.
©2024 Bloomberg L.P.
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Publish date : 2024-11-21 00:26:00
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