Skip to main content

Macroeconomic outlook report: Nordics

First quarter of 2020

During 1Q20, Denmark, Norway, Sweden and Finland suffered decreases in their year-over-year GDP growth rates with respect to the previous quarter. These decreases were due to the spread of the Covid-19 virus and the containment measures carried out to mitigate it. In terms of inflation, Norway registered the highest rate of the four countries for this quarter, while Denmark recorded the lowest rate. In the labor market, Norway showed the lowest unemployment rate, while the highest corresponded to Sweden.

Macroeconomic summary

  • Denmark: GDP y/y growth rate fell by 2.36 p.p. down to -0.21% during the first quarter of the year; this was mainly due to the performance of the internal demand. The inflation rate stood at 0.63%, the lowest of the period, after registering a decrease of 0.07 p.p. compared to the previous quarter. The unemployment rate decreased by 0.20 p.p. during this quarter down to 4.87%.
  • Norway: Registered a 1.59 p.p. decrease in its GDP growth rate when compared to the previous quarter, down to a y/y growth rate of 0.19%. This behavior was mainly due to the fall registered in the internal demand. Inflation stood at 1.13%, the highest out of the four countries, despite registering a decrease of 0.47 p.p when compared to the previous quarter. Furthermore, the unemployment rate decreased in the first quarter of the year standing at 3.60%, remaining the lowest rate among the Nordic countries.
  • Sweden: Its GDP y/y growth rate decreased by 0.08 p.p. when compared to the previous quarter down to 0.41%, due to the deceleration of the internal demand, which was deeply affected by the spread of the COVID-19 virus. Inflation decreased by 0.77 p.p. with respect to the previous quarter, reaching 0.97% in this quarter. The unemployment rate increased 1.30 p.p. up to 7.60%, making it the highest out of the four economies.
  • Finland: Recorded a sharp 2.00 p.p. decrease in the year-over-year GDP growth rate compared to the previous quarter, down to -1.10%. This performance was due to the contraction of internal demand, deeply affected by the sanitary crisis. The inflation rate slightly increased by 0.04 p.p. with respect to the previous quarter up to 0.81%. The unemployment rate increased by 1.10 p.p. from the previous quarter, up to 7.13%.

For more information, click here to access the executive document in pdf.

© GMS Management Solutions, S.L., 2020. 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.