NORWAY
Norwegian Q1 mainland GDP was 0.2% Q/Q, in line with consensus expectations but above the March MPR forecast of 0.0%. Q4’s reading was revised a tenth higher to 0.3%.
- The monthly GDP indicator had indicated upside risks to the Norges Bank’s forecast over the first three months of the year.
- Household consumption fell 0.7% Q/Q. Goods consumption fell 2.2% Q/Q, largely due to a sharp fall in motor vehicle purchases. Services consumption rose 0.2% Q/Q.
- Gross fixed capital investment also fell sharply, at -7.3% Q/Q, though Statistics Norway notes that this series can be volatile, and the current data is preliminary at this stage.
- Net exports also contributed to the downside, with exports rising 0.4% Q/Q but imports rising 1.0% Q/Q.
- Employment growth was 0.3% Q/Q, above the Q1 Regional Network Survey’s expectation of 0.1%. However, total employed persons were essentially in line with the Norges Bank’s March MPR forecast.
- Hours worked rose 0.5% Q/Q. This suggests that real productivity per hour worked was a negative contributor to Q1 mainland GDP growth.
- Overall GDP rose 0.2% Q/Q as well, with Q4’s reading also revised a tenth higher to 1.6% Q/Q.
- A reminder that there will be no monthly GDP indicator releases for April, May, July or August, due to the audit of the Norwegian National Accounts this year.
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