Krone weakens as Norway reports weak inflation and growth
Norway’s economic recovery hit a speed-bump at the end of 2017, as the economy fell into contraction and inflation started the new year much weaker than expected, prompting a sharp drop in the country’s currency. Core inflation fell from 1.4 per cent to 1.1 per cent year on year at the start of 2018. Economic output contracted by 0.3 per cent over the final three months of the year. That sent the krone down 0.8 per cent against the euro. The country’s mainland economy maintained its quarterly growth rate of 0.6 per cent, the same as the third quarter, but declines in the oil and gas industry weighed on the overall figures. That said, the economy still improved over the year as a whole, with full-year GDP growth of 1.8 per cent marking an improvement over 2016’s 1.1 per cent.
- Financial Times -