Norway Avoids Economic Slowdown

According to seasonally-adjusted figures, gross domestic product (GDP) for Mainland Norway rose by 0.5 per cent in the 1st quarter of 2015, while the growth in the second half of 2014 has been revised downwards to a growth of 0.4 per cent.

From fourth quarter of 2014 to the first quarter of this year, employment was unchanged, after several years of steady increase, according to Statistics Norway (SSB). For the first time since the 2nd quarter of 2010, there was no growth in employment. Beforehand experts was expecting a worse result. 

Also the preliminary figures show that petroleum investment rose by 0.8 percent in the first three months.

But although growth was higher than expected, according to the chief economist at Swedbank, Harald Magnus Andreassen, the details show a more nuanced picture.

– There is a weaker development on mainland investment, and if we measure the first quarter of this year compared with the first quarter of last year, growth is still lower than we expected, Andreassen says to NRK.

He believes that the decline in the oil industry have begun to put stronger pressure on Norwegian economy than expected and the unemployment rate will rise further.

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