Norwegian mainland growth unchanged in November, Norges Bank likely to hike rate in March

The Norwegian monthly national accounts data indicated that the mainland GDP growth was unchanged on a sequential basis in November. Private and public consumption both rose 0.1 percent, while gross investments dropped 0.9 percent. Exports of traditional goods were up 3.5 percent in November, while imports of traditional goods dropped 2.7 percent. Total GDP dropped 0.3 percent.

The three-month moving average showed growth in mainland Norway of 0.6 percent, compared to 0.3 percent in October. The October figure was upwardly revised from 0.2 percent. Private consumption was up 0 percent, whereas public consumption and gross real investment rose 0.8 percent and 5.6 percent, respectively. Exports of traditional goods were up 0.4 percent in November, while imports of traditional goods were up 0.8 percent. Total GDP was up 0.1 percent.

“We expect growth to resume in Q4 and hence support the view that Norges Bank will hike the policy rate to 1.00% in March”, said DNB Markets in a research report.