During the third quarter of 2020, Denmark, Sweden, Norway and Finland experienced partial recoveries of their economic activity. As a result, their y/y GDP variation rates slowed down their contractions compared to 2Q20. In terms of inflation, Norway recorded the highest rate, and all four countries analyzed reached positive rates. Regarding the labor market, both Denmark and Norway registered an increase in their unemployment rate, while Sweden and Finland reached lower unemployment levels compared to the previous quarter.
Macroeconomic outlook report: Nordics 3Q20
- Denmark: even though it increased by 4.32 p.p. with respect to the previous quarter, the year-on-year variation of GDP continued to register negative growth rate, and stood at 3.68%. The inflation rate stood at 0.53% after recording an increase of 0.43 p.p. compared to the previous quarter. Regarding the labor market, the unemployment rate increased by 0.73 p.p. this quarter up to 6.20%.
- Norway: reduced its year-on-year GDP contraction by 3.87 percentage points compared to the previous quarter, registering a rate of -0.17%, the least severe drop of the four countries analyzed. The inflation rate stood at 1.53%, after increasing by 0.36 p.p., placing Norway once again as the country with the highest inflation among the analyzed group. The unemployment rate increased by 0.80 p.p. up to 5.40%, the lowest among the Nordic countries.
- Sweden: despite recording an increase of 4.71 percentage points in its GDP variation rate with respect to the previous quarter, it continued to register negative growth rate, and stood at -2.66%. Inflation increased by 0.47 p.p. with respect to the previous quarter, reaching a rate of 0.57%. The unemployment rate fell by 0.50 p.p. down to 8.60%. Despite this performance, Sweden recorded the highest unemployment rate among the four economies.
- Finland: with respect to its year-on-year GDP variation rate, it reduced its contraction by 3.20 percentage points with respect to the previous quarter, and stood at a rate of -3.00%. The inflation rate increased by 0.50 p.p. compared to the previous quarter, up to a rate of 0.33%. The unemployment rate decreased by 1.20 p.p. compared to the previous quarter to a rate of 7.67%, which was the largest decrease in the unemployment rate among the four Nordic countries.
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