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Macroeconomic outlook report: Nordics

Fourth quarter of 2017

During the fourth quarter of 2017, all of the Nordic economies registered a positive year-over-year growth, accelerating their rates compared to 3Q17, with the exception of Norway. Sweden experienced the highest acceleration of its GDP, of 0.44 p.p. from 3Q17, reaching the highest y/y growth rate, at 3.29%. Inflation rates stood between 0.60% and 1.77% during the fourth quarter, decelerating from the previous quarter, while the unemployment rate decreased in all Nordic countries when compared to 3T17.

Macroeconomic summary

  • Denmark: GDP grew at a 1.36% rate in 4Q17, after registering an acceleration of 0.35 p.p. from 3Q17. This behavior was due to the growth of domestic demand, driven by fixed capital investment. The inflation rate recorded a 0.03 p.p. decrease from 3Q17, down to 1.27%. The unemployment rate decreased by 0.33 p.p. in this quarter, reaching 5.40%.
  • Norway: Norwegian GDP recorded a reduction in its y/y growth rate of 1.90 p.p. compared to 3Q17, standing at 1.60. The decrements in the growth rates of private consumption as well as investment growth were the main drivers of the decrease in GDP growth. After decreasing 0.28 p.p. in the fourth quarter of 2017, the inflation rate stood at 1.30%, the second highest rate of the four countries. The unemployment rate decreased by 0.44 p.p. in the fourth quarter of the year, reaching 3.80%, the lowest rate among Nordic countries.
  • Sweden: during the fourth quarter of the year, Sweden experienced an increase in its y/y GDP growth, reaching a 3.29% rate, due to the acceleration of external demand, private consumption and gross fixed capital formation . Regarding inflation, it increased by 0.26 p.p. with respect to 3Q17, reaching 1.77% in this quarter. The unemployment rate stood at 6%, 0.20 p.p. lower than 3T17.
  • Finland: During the fourth quarter of the year, Finland registered an acceleration of 0.20 p.p. in its GDP growth rate with respect to the previous quarter, recording a 2.40% rate. The behavior of GDP was driven by the higher growth of private and public consumption, as well as of net exports. The inflation rate decreased by 0.08 p.p. with respect to the previous quarter, standing at 0.60%. The unemployment rate decreased by 0.07 p.p. when compared to the 3T17, reaching a 7.60% rate, the highest of the Nordics economies.

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© GMS Management Solutions, S.L., 2018. 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.