The expansion in the first half of 2025 comes after a longer period of subdued growth in the Norwegian economy, says SSB.
Norges Bank kept interest rates on hold at 4.25% and reiterated plans to cut borrowing costs later this year. (Reuters pic)
OSLO: Norway’s mainland economy grew at a faster pace than economists had expected in the second quarter (Q2), while first-quarter (Q1) growth was revised upwards, Statistics Norway (SSB) data showed today, boosting the country’s currency.
“The expansion in the first half of 2025 comes after a longer period of subdued growth in the Norwegian economy,” SSB said in a statement.
The April-June period saw a rise in mainland GDP of 0.6% compared with January-March, while the central bank and economists polled by Reuters had expected growth of 0.3%.
The Q1 growth was revised upwards to 1.2% from the originally reported 1.0%.
Norway’s crown currency strengthened against the euro to trade at 11.89 by 6.39am from 11.92 ahead of the data release.
Norges Bank last week kept interest rates on hold at 4.25%, as unanimously predicted by analysts, and reiterated plans to cut borrowing costs later this year.
However, the stronger-than-expected growth could delay a widely anticipated easing of monetary policy next month, analysts said.
“We see a risk that Norges Bank will postpone the planned rate cut in September,” Handelsbanken said in a note to clients.
Mainland GDP, which excludes the often volatile impact of oil and gas production, is the most commonly watched measure of how the Norwegian economy is performing.
