During 2Q20, Denmark, Norway, Sweden and Finland experienced significant decelerations in their year-over-year GDP growth rates with respect to the previous quarter. In terms of inflation, Norway recorded the highest rate out of the four countries, while Finland registered a negative rate. Regarding the labor market, Norway recorded the lowest unemployment rate, while the highest corresponded to Sweden.

 


Macroeconomic outlook report: Nordics 2Q20

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Macroeconomic summary

  • Denmark´s year-to-year GDP growth rate decreased by 7.61 p.p., down to a rate of -7.67% in the second quarter of the year. This performance was due to the behavior of demand during this quarter, which was heavily affected by the global sanitary crisis. The inflation rate stood at 0.10%, after recording a decrease of 0.53 p.p. over the previous quarter. The unemployment rate increased by 0.60 p.p. in this quarter, up to a rate of 5.47%.
  • Norway experienced a contraction in its GDP growth rate of 5.33 p.p. compared to the previous quarter, down to a rate of -5.33%. This behavior was due to the fall in domestic demand, discouraged by the performance of private consumption. Inflation stood at 1.17%, standing as the highest out of the four countries, after registering an increase of 0.04 p.p. compared to the previous quarter. Furthermore, the unemployment rate increased in the second quarter of the year up to 4.60% and stood as the lowest rate among the Nordic countries.
  • Sweden registered a sharp decrease in its GDP growth rate compared to the previous quarter, decelerating by 8.42 p.p. down to -7.74%, mainly due to the poor performance of private consumption. Inflation decreased by 0.87 p.p. with respect to the previous quarter, down to a rate of 0.10% in the second quarter. The unemployment rate increased by 1.50 p.p., up to 9.10%, making it the highest out of the four economies.
  • Finland recorded a deceleration of 5.20 p.p. in its year-over-year GDP growth rate compared to the previous quarter, down to a rate of -6.50%. The performance was mainly due to the COVID-19 virus effects, which resulted in heavy decreases in consumption and in the external demand. The inflation rate decreased by 0.97 p.p. with respect to the previous quarter, down to a rate of -0.17%. The unemployment rate increased by 1.74 p.p. compared to the previous quarter, up to 8.87%.

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