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Macroeconomic outlook report: Nordics

Second quarter of 2017

During the second quarter of the year, all of the Nordic countries registered a higher growth rate than in 1Q17, with the exception of Norway. Sweden experienced the highest acceleration of its GDP, of 0.80 p.p. from 1Q17, reaching the highest y/y growth rate at 3.05%. Inflation decreased in all Nordic countries with respect to the previous quarter, except for Sweden. On the other hand, the unemployment rate increased from 1Q17 in Sweden and Finland, decreasing in Denmark and Norway.

Macroeconomic summary

  • Denmark: its GDP grew at a 2.72% rate in 2Q17, after registering an acceleration of 0.28 p.p. from 1Q17. This behavior was due to the performance of domestic demand, supported by fixed capital investment. The inflation rate recorded a 0.14 p.p. decrease from 1Q17, down to 0.83%. The unemployment rate decreased by 0.33 p.p. in this quarter, recording a 5.70% rate.
  • Norway: Norwegian GDP recorded a reduction in its y/y growth rate of 2.40 p.p. compared to 1Q17, standing at 0.10% in 2Q17. The deceleration of domestic demand, motivated by the decrements in the growth rates of private consumption and gross capital formation, was the main driver of the decrease in GDP growth.  After decreasing 0.50 p.p., in the second quarter of 2017, the inflation rate stood at 2.07%, the highest rate of the four countries. The unemployment rate decreased by 0.20 p.p. in the second of the year, reaching 4.30%, the lowest rate among Nordic countries.
  • Sweden: during the second quarter of the year, Sweden experienced an increase in its y/y GDP growth, reaching a 3.05% rate, due to the acceleration of both domestic and external demand. Inflation increased by 0.27 p.p. with respect to 1Q17, reaching 1.77% in this quarter, standing closer to the 2% target established by the Swedish Central Bank. The unemployment rate stood at 7.30%, 0.20 p.p. higher than that of the previous quarter.
  • Finland: During the second quarter of the year, Finland registered an acceleration of 0.19 p.p. in its GDP growth rate with respect to the previous quarter recording a 3.01% rate. The behaviour of GDP was driven by the higher growth of private and public consumption, as well as of net exports. The inflation rate decreased by 0.20 p.p. with respect to the previous quarter, standing at 0.73%. The unemployment rate increased by 0.60 p.p. with respect to the previous quarter, reaching a 9.93% rate.

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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.