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Norway unemployment rate 3.5% in Aug-23

- Norway's unemployment rate stood at 3.5% in August 2023, showing stability in the labor market.
- The current rate is slightly higher than the one-year average but lower than the long-run average.

Norges Bank: Sep-23

• The unsurprising policy rate increase to 4.25% by the Norges Bank is a calibrated response to contain the substantially high inflation, which is markedly above the set target, and aligns with the global trend of monetary tightening due to elevated inflation levels.
• The Norwegian economy is exhibiting signs of slowdown, impacted by the contraction in household consumption and housing investment, with the possibility of further restraint from the expected additional policy rate hike in December. However, strong petroleum investment and export growth are crucial supportive elements in this scenario.
• The future trajectory of the policy rate and inflation is fraught with uncertainties and is contingent on the economic pressures and inflationary dynamics, requiring vigilant and adaptive policy responses to maintain economic stability and anchor inflation expectations effectively.

Norway mainland GDP growth 0.4% m-o-m (consensus 0.0) in Jul-23

- Norway's mainland GDP growth in July 2023 surpassed expectations with a 0.4% increase, marking the highest growth rate since May 2023.
- This growth outperformed both the one-year average and the long-run average by 0.23 percentage points, indicating a strong and potentially sustainable expansion.

Norway PPI inflation -37.39% y-o-y in Aug-23

- Norway's PPI inflation in August 2023 experienced a substantial year-on-year decline of 37.39%, following a similar decline the month prior.
- The August figure is 32.83 percentage points below the one-year average and 45.02 percentage points below the long-run average, indicating prolonged deflationary pressures in the Norwegian economy.