Norway regional network reports of slowing growth

The Regional network reports of slowing growth, but still broadly in line with Norges Bank's forecast.

The Q1 Regional network report indicates growth in Mainland GDP in Q1 at 0,3 % q/q, just slightly lower than in Q4. Norges Bank expects growth in Q1 at 0,35% so we see the reported growth as broadly in line with Norges Bank's view.

Nordea notes as follows:

• We think it confirms the view of a slowdown in the Norwegian economy due to weakness in oil related industries. Growth is however broadly in line with Norges Bank's forecast, but growth expectations seems somewhat lower.
  
  
• The weakness in oil related industries was also reflected in manufacturing production figures.
• Manufacturing production fell 3,7% m/m in January, mainly due to lower production in oil related industries.
  
  
• We expect Norges Bank to cut rates by 25bp at the monetary policy meeting in March.