The Norwegian economy showed the highest growth rate since 2007 in 2021, by 4.2%, as the country recovered from the pandemic, the country’s statistical office said.
In the October-December quarter, growth was 1.4% compared to July-September, compared to estimates for 1.2%.
The mainland’s GDP, which does not include the often volatile effects of Norway’s oil and gas production, is the most common measure of the economy.
In 2020, it shrank by 2.3% to its lowest growth rate in 75 years, as strict coronavirus restrictions hit business.
Last year’s growth was mainly attributed to the recovery in a wide range of services, which were severely affected in the early stages of the pandemic, the statistics office said.
“In April 2021, the gradual resumption of the economy began and activity grew every month from April to November,” said SSB economist Paal Sletten.
However, many restrictions were lifted in December to help combat the rapid spread of Omicron, causing a slowdown in the last month of the year.
Norway lifted most of the restrictions in recent weeks, setting the stage for bars, restaurants, entertainment venues and other activities to be fully operational.
Norway’s central bank, which started raising interest rates last year, plans to raise interest rates three times in 2022, and some economists believe the pace of tightening will be even faster.
Source: Capital
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