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Erik Johannes Bruce, analyst at Nordea Markets, notes that the Norway’s mainland GDP grew by 0.3% q/q in Q1, below consensus of 0.4% and Norges Bank’s estimate of 0.6%, while the Q4 GDP was revised up from 0.9 to 1.1%.

Key Quotes

“The Q1 figure was pulled down approximately 0.3% point by falling electricity production and poor fishery. At the same time Q4 was pulled up by temporary factors. That explains why growth went from 1.1% to 0.3%.”

“The underlying picture is strong. Year on year mainland GDP is up 2.4% which is the current trend.”

“Norges Bank signaled that is was prepared for Q1 growth below its March forecast at the meeting in May. It will say that todays’ figure is well in line with its view. It could actually give most weight to employment which grew by 0.5% q/q above its forecast at 0.4%.”