Norway posts stronger GDP growth

Mainland GDP in Q1 was stronger than expected with 0.5% q/q. There was solid growth in most production sectors apart from manufacturing were production fell strongly as expected. The figure was much stronger than expected by Norges Bank with its forecast at 0.35% q/q. Both Q3 and Q4 was revised down 0.1% point and growth y-o-y (2.0%) was actually marginally on the downside, notes Nordea Bank.

The demand picture also adds to evidence that one should not judge this figure as much stronger than expected. Consumption grew at healthy pace, but mainland investment fell again (3 quarters in a row). Demand was held up by quit strong growth in changes in inventories.  The labour market figures were also quit weak with zero growth in employment q/q. 

A mixed picture for Norges Bank. Growth kept up better at the start of the year than expected. But the downward revision of second part of last year, the rather weak demand picture and zero growth in employment (q/q) points the other way.

In sum analysts think Norges Bank will view the figures as broadly in line with their view on the economy.

Details:

• Mainland GDP grew by 0.5%q/q in Q1.
  
  
• Q4 growth was 0.4% revised down from 0.5%.