Norway Q4 GDP rises 0.3 pct q/q, suggests slow, but steady pace of economic growth

Norway's economic growth gained momentum in the final three months of 2015, albeit at a slower pace. Preliminary figures from Statistics Norway showed Thursday that mainland Norway's Q4 gross domestic product (GDP) grew 0.3 percent q/q, compared to a rise of 0.1 percent in Q3.

The largest contribution to growth in mainland GDP in the fourth quarter came from building and construction activities. Contribution to gross product from building and construction sectors rose by 1.7 percent in Q4. For the year, overall production increased in construction by 3.7 percent.

For the year as an whole Mainland Norway growth came out at 0.8 percent, a tenth higher than Norges Bank’s forecast, due to revisions done in the first part of the year. Annual growth compared to 1.1 percent in the previous year.

Overall GDP grew 1.1 percent in the fourth quarter after a 0.6 percent decline in the previous three months. And for 2016, overall GDP eased to 1 percent from 1.6 percent in 2015, the weakest pace in three years.

"Although overall growth currently is moderate, the figures indicate a solid pickup once the drag from the oil sector eases, as domestic demand is solid. The drag will probably ease somewhat already this year, as we expect the drop in oil investments to moderate from -15% to -10%. Our GDP forecast for 2017 is 1.7%." said Nordea Bank in a report.