Report: Norway’s economy proved to be the most resistant to the pandemic in the Nordic region

In the pandemic year of 2020, Norway experienced less of an economic decline than its Nordic neighbors, according to a new report.

In 2020, Norwegian GDP fell by 0.7%, against an average decline of 3% in the Nordic countries. Iceland had the largest decline, with 7.1%. The average in the EU was a decrease of 5.9%, the report “State of the Nordic Region” from Nordregio shows.

The second quarter of 2020 was when the Nordic region was hit hardest financially, in the first round of the very strict infection control measures. The third quarter of 2020 showed an increase that extended into the second quarter of 2021.

Support measures

The economic downturn led to rising unemployment, but Norway was less affected than its neighboring countries, according to Nordregio.

All the Nordic countries had strong financial support measures, and the Danes spent the most, with 32.7% of their GDP being poured into financial support during the pandemic. 

Sweden spent 16.1%, Norway over 14%, while Iceland spent about 12% of its GDP on such measures. The EU’s total crisis support was 10.5% of GDP.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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