Nordea expects strong economic growth in the immediate years to come

Analyst Erik Bruce of NordeaAnalyst Erik Bruce of Nordea.Photo: Vidar Ruud / NTB scanpix

In its forecast report, published by Nordea Economic Outlook on Wednesday, Nordea Markets is very optimistic about the near future for the Norwegian economy. They expect it to grow faster than it has for several years.


Economic growth will rise from an expected 1.9% this year, to 2.6% next year, according to chief analyst, Erik Bruce,at Nordea Markets.

He pointed out that the oil industry slump, and that in industries heavily connected to oil production,has stopped, and a prudent increase is expected for this sector of Norwegian business during the next few years.

The overall picture Nordea Markets draws up for this year, and the next two years, is one of the most important indicators that the economy is moving in the right direction:

Economic growth is steadily increasing, both in the overall, and the oil-related sector. Oil investment can start to grow, private consumption is expected to remain stable, at a high level, and unemployment will fall steadily to 3.8% by 2019.

Inflation will, of course, remain low – 1.5% this year, and 1.2% in 2018, and 2019. For the vast majority of us, it’s likely that we’ll get better purchasing power, even though wage settlements are expected to be moderate.

And since the key rate of Norges Bank is based on the so-called ‘inflation target’, which aims to keep inflation in Norway stable at 2.5%, Bruce doesn’t see any interest rate hikes until, at the earliest, 2019, and that would be as a result of the European Central Bank raising its interest rate level.

© NTB Scanpix / Norway Today