Tough start to the year for Norwegian and Swedish economies
The economies of Norway and Sweden contracted in the first quarter of the year, weighed down by Covid restrictions, official
statistics showed on Friday.
But the two Scandinavian countries are still expecting robust growth for the year as a whole, despite the conflict in Ukraine and the tough start to 2022.
Sweden's gross domestic product fell by 0.4 percent in the first quarter compared with the last three months of 2021, according to its SCB statistics agency.
Norway's GDP fell by 0.6 percent, excluding hydrocarbon production and maritime transport, its SSB statistics service said.
The solid recovery seen in March, with growth of 1.0 percent in both countries, was not enough to erase the decline due to the Omicron variant at the very start of the year, when Covid restrictions were still in place.
READ ALSO: What the revised national budget in Norway means for foreigners
The Norwegian government expects vigorous growth in 2022, though it brought its estimate down slightly on Thursday in a revised draft budget -- to 3.6 percent from the 3.8 percent previously expected.
The Bank of Norway has already raised its key rate three times since September, and has hinted at several more hikes in the coming months.
Its Swedish counterpart also began tightening monetary policy in April, pushing its rate above zero for the first time since September 2014.
The Swedish government expects growth of 3.1 percent for the year as a whole.
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But the two Scandinavian countries are still expecting robust growth for the year as a whole, despite the conflict in Ukraine and the tough start to 2022.
Sweden's gross domestic product fell by 0.4 percent in the first quarter compared with the last three months of 2021, according to its SCB statistics agency.
Norway's GDP fell by 0.6 percent, excluding hydrocarbon production and maritime transport, its SSB statistics service said.
The solid recovery seen in March, with growth of 1.0 percent in both countries, was not enough to erase the decline due to the Omicron variant at the very start of the year, when Covid restrictions were still in place.
READ ALSO: What the revised national budget in Norway means for foreigners
The Norwegian government expects vigorous growth in 2022, though it brought its estimate down slightly on Thursday in a revised draft budget -- to 3.6 percent from the 3.8 percent previously expected.
The Bank of Norway has already raised its key rate three times since September, and has hinted at several more hikes in the coming months.
Its Swedish counterpart also began tightening monetary policy in April, pushing its rate above zero for the first time since September 2014.
The Swedish government expects growth of 3.1 percent for the year as a whole.
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