Norwegian mainland GDP grows sequentially in July, Norges Bank unlikely to hike policy rate in September

The Norwegian mainland GDP grew in July. On a sequential basis, the mainland GDP grew 1 percent, whereas it grew 0.9 percent on a three-month-on-three-month basis. The strong domestic economy might underpin further rate hikes, but international factors are expected to make Norges Bank take a wait-and-see-approach during the meeting next week, said DNB Markets in a research report.

Private consumption dropped 0.2 percent, whereas public consumption fell 0.3 percent. Gross investments for mainland Norway rose 6.1 percent sequentially. Petroleum investments grew 11.3 percent sequentially in July. Exports of traditional goods dropped 2.4 percent in the month and fell 1.6 percent three-month-on-three-month basis. Imports of traditional goods fell 0.3 percent sequentially in July.

Today’s figures underpin the view of a strong Norwegian economy at the moment.

“Even with a relatively strong network report tomorrow we expect Norges Bank to refrain from hiking the policy rate at the meeting next week and take a wait-and-see-approach due to international factors”, added DNB Markets.