Norwegian economic growth likely to have picked up further in Q1 – Nordea Bank

Norway’s mainland GDP growth has rebounded and is likely to have picked up further in the first quarter of 2017. According to a Nordea Bank research report, the mainland GDP growth is expected to have expanded 0.5 percent sequentially and 1.4 percent year-on-year in the first quarter. According to the central bank, the economy is likely to have expanded 0.4 percent.

Throughout the last year, the mainland GDP rebounded following a considerable deceleration in the earlier years. The first quarter growth print is expected to show that the growth has rebounded further. The drag from declining oil investment is waning and is helping the economic growth improve further. Manufacturing production has also risen by a sound 0.5 percent sequentially in the first quarter. Moreover, the oil-related services are performing better. Construction is likely to have expanded strongly in the March quarter, owing to a solid growth in housing investment.

Meanwhile, employment growth has also rebounded strongly and expanded 0.1 percent through last year. The first quarter figure is expected to be very much in line with this.

“Stronger GDP growth and continued higher employment should be reassuring for Norges Bank. If we are right and growth actually ends up marginal on the strong side it should weaken the case for a rate cut”, added Nordea Bank.