Norway March GDP points to recovery after Q1 contraction

div classBodysc17zpet90 cdBBJodivpOSLO Reuters – Norways economy contracted in the first quarter amid coronavirus lockdowns, but growth resumed towards the end of the period, Statistics Norway SSB data showed on Friday.p

pNorway has scrapped its coronavirus curbs in recent months with most adults and many children now vaccinated.“In March, the activity in the mainland economy was approximately back to the same level as in November, the month before the latest lockdown was introduced,” SSB economist Paal Sletten said in a statement.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe JanuaryMarch quarter saw a decline in mainland GDP of 0.6 compared with the OctoberDecember period, the statistics office said, more than the 0.5 drop predicted in a Reuters poll of analysts.p

pMainland GDP, which excludes the often volatile impact of Norways oil and gas production, is the most commonly watched measure of how the Norwegian economy is performing.p

pIn March, the final month of the quarter, mainland GDP grew 1.0, beating an average prediction of 0.8.p

pThe crown currency weakened slightly to trade at 10.23 against the euro at 0622 GMT, down from 10.21 just before the data release.p

pThe central bank, which has raised rates three times since last September, plans seven more hikes by the end of 2023.p

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pp Reporting by Terje Solsvik, editing by Gwladys Fouche and Nick Macfiep

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