Norway GDP accelerated in August, points to Dec rate hike

FILE PHOTO: Norwegian flags flutter at Karl Johans street in Oslo, Norway
FILE PHOTO: Norwegian flags flutter at Karl Johans street in Oslo, Norway, May 31, 2017. REUTERS/Ints Kalnins/File Photo/File Photo

October 8, 2021

OSLO (Reuters) -The Norwegian mainland economy grew at a faster-than-expected pace in August, accelerating from the previous month, Statistics Norway (SSB) data showed on Friday.

August mainland GDP, a measure which excludes oil and gas production, rose 1.1% from July, SSB said, up from a revised 0.6% in July, while a Reuters poll of analysts had predicted an increase of 0.8%.

A boom in the country’s fisheries made significant contribution to the higher growth, Statistics Norway said.

The Norwegian central bank, which last month began a campaign of rate hikes https://www.reuters.com/world/europe/norway-raises-interest-rates-says-another-hike-likely-december-2021-09-23, had predicted August mainland GDP growth would amount to 1.0%.

“Mainland GDP … confirms the economy is on track, and that interest rates will rise again in December,” Chief Economist Frank Jullum at Danske Bank’s Norwegian subsidiary said.

The crown currency strengthened slightly against the euro to trade at 9.91 at 0817 GMT, from 9.92 just before the data release.

In 2020, the Norwegian economy contracted by 2.5%, making it the weakest year since World War Two.

(Reporting by Terje Solsvik, editing by Gwladys Fouche)