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Macroeconomic outlook report: Nordics

Second quarter of 2018

During the second quarter of 2018, only Denmark accelerated its year-over-year growth rate when compared to the previous quarter. Norway, Sweden and Finland presented growth slowdowns, being the decrease experimented by Norway the largest one. Regarding inflation, Norway presented the highest rate of the four countries for this quarter, with 2.43%, while Denmark and Finland registered the lowest ones, of 1%. In terms of the labor market, Norway recorded the lowest unemployment rate, of 3.90%, while the highest one was the Finnish one, with 8.20%.

Macroeconomic summary

  • Denmark: GDP growth accelerated by 1.35 p.p. to 0.64% in 2Q18, based on the acceleration of internal demand, being the only country accelerating its GDP growth. The inflation rate stood at 1%, the lowest of the period along with Finland, after an increase of 0.40 p.p. compared to the previous quarter. The unemployment rate rose 0.10 p.p. this quarter up to 5.07%.
  • Norway: Norwegian GDP experienced a reduction in its growth rate of 1.08 p.p. compared to the previous quarter, registering a 0.78% rate. This behavior was due to the slowdown in external demand. Inflation stood at 2.43% after an increase of 0.43 p.p. in the second quarter of 2018, the highest rate among the four countries. On the other hand, the unemployment rate decreased 0.10 p.p. in the second quarter of the year down to 3.90%, remaining the lowest rate among all the Nordic countries.
  • Sweden: during the second quarter of the year, Swedish GDP decelerated by 0.38 p.p., still recording the second highest rate of 2.45%. The contraction was due to lower growth in both domestic and external demand. Also, inflation increased by 0.14 p.p. compared to 1Q18, reaching 1.84% in this quarter. The unemployment rate increased by 0.20 p.p. to 6.80% in 2Q18, the second highest of the period.
  • Finland: during the second quarter of the year, Finland registered a deceleration of 0.24 p.p. in its y/y growth rate of GDP when compared to the previous quarter, reaching a rate of 2.49%. GDP’s performance was caused by the lower growth of domestic demand. The inflation rate increased by 0.27 p.p. compared to the previous quarter, up to 1%. The unemployment rate experienced a decrease of 0.53 p.p. when compared to the previous quarter, down to 8.20%, the highest of the four economies.

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© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.