In the first quarter, the Mainland Norwegian economy continued to grow, although the pace of expansion has slowed compared to the fourth quarter, due to weaker household consumption, according to data released by Statistics Norway on Thursday.
The gross domestic product (GDP) increased by 0.2 percent from the previous quarter, following a 0.3 percent rise in the December quarter, aligning with market expectations.
From an expenditure perspective, household consumption decreased by 0.7 percent over the quarter, largely driven by a significant drop in motor vehicle purchases.
"Over the past year, rising prices and interest rates have resulted in weak household consumption, a decline in investments in residential properties, and a general slowdown in the Norwegian economy," stated Pal Sletten, head of the division of national accounts at Statistics Norway.
"This trend continued into the first quarter of 2024."
The data also indicated that general government consumption grew by 0.5 percent, while gross fixed capital formation saw a substantial decrease of 7.3 percent.
In March, the Mainland Norwegian economy contracted by 0.2 percent month-on-month, following a 0.3 percent decline in February. Concurrently, the overall GDP experienced a rebound, growing by 0.6 percent after a 1.0 percent decline in the previous month.
