During the fourth quarter of 2021, Denmark and Sweden speed up their economic growth while Norway and Finland recorded a slight shrinkage, all of them consolidating their economic recovery started during the second quarter of the year. In terms of inflation, Norway recorded the highest rate despite being below the OECD average. Regarding the labour market, all the Nordic countries presented lower unemployment levels than those of the previous quarter, with the exemption of Denmark, being the Norwegian labour market the one experiencing the largest decline.


Macroeconomic outlook report: Nordics 4Q21

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Macroeconomic summary

  • Denmark: In the fourth quarter, the Danish economy continued to recover, after accelerating its GDP by 0.70 p.p. compared to the previous quarter, recording a year-on-year variation in GDP of 4.42%. As for the inflation rate, it stood at 3.17%, after registering an increase of 1.30 p.p. compared to the previous quarter. The unemployment rate rose by 0.20 p.p. to stand at a rate of 5.07%.
  • Norway: Norway experienced a slight slowdown in its economy of 0.59 p.p. compared to the third quarter, with its GDP standing at a year-on-year rate of change of 4.80%. On the other hand, it registered an inflation rate of 4.63%, after experiencing a rise of 1.13 p.p., with Norway once again being the country with the highest inflation among the Nordic countries. As for the unemployment rate, it contracted by 0.80 p.p., down to 3.40%, being the lowest of the four countries analyzed.
  • Sweden: In the fourth quarter of 2021 the Swedish economy registered an acceleration in its GDP variation rate of 1.02 p.p. compared to the previous quarter, registering a positive growth rate of 5.18%. When it comes to unemployment rate, it decreased by 0.70 p.p. compared to the previous quarter to stand at 7.50%, still the highest among the four countries. On the other hand, inflation’s rise was the sharpest; by 1.33 p.p. up to a rate of 3.33%.
  • Finland: Regarding the year-on-year rate of change in its GDP, Finland slowed its growth by 0.50 p.p. to 3.00%, the lowest year-on-year growth rate among the four countries. Meanwhile, the inflation rate continued to expand reaching 3.47%, the second highest rate in the group. As for the labour market, the unemployment rate decreased by 0.66 p.p., with Finland registering a rate of 6.97%.

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