(Bloomberg) -- Norway’s economy grew in line with analysts’ forecasts in the second quarter, boosted by a post-pandemic rebound in service industries that outweighed the dent from surging prices.
Mainland gross domestic product, which adjusts for the oil-rich nation’s offshore industry, expanded 0.7% from the previous three months, the statistics office said on Thursday. This was in line with economists’ projections in a Bloomberg survey, while the central bank had forecast a 1% expansion.
Norway’s fossil-fuel rich economy, which weathered the pandemic better than most, has faced growing concerns about overheating even as inflation at a 34-year high is hampering households’ purchasing power.
Unemployment has declined to the lowest level since 2008 as the return in demand for services coincides with a boon for the energy industry. Sales of Norway’s natural gas and oil to other European nations have risen to record levels as the continent is suffering an energy crisis brought on by Russia’s export curbs.
The data comes ahead of the rate decision later on Thursday by Norges Bank, which is expected to deliver a half-point increase, in what would echo a more aggressive pace of borrowing cost increases by the top global monetary authorities.
Service industries, including housing services, grew 1.3% in the second quarter, the office said. The industries that have been hit hard by the pandemic contributed the most to the upswing in the quarter, particularly accommodation and catering, it added.
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