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REFILE-Danske Bank Markets slashes Norway 2017 GDP forecast
January 5, 2017 / 8:05 AM / a year ago

REFILE-Danske Bank Markets slashes Norway 2017 GDP forecast

(Fixes format)
    OSLO, Jan 5 (Reuters) - The Norwegian economy will recover
more slowly than previously anticipated, economists at Danske
Bank Markets predicted on Thursday.
    The forecast for growth in the mainland economy in 2017 was
cut to 1.8 percent from a previous estimates made in October of
2.3 percent, while growth in 2018 was seen at 2.2 percent.
    Despite the cut, and that investments by the oil industry
will continue to decline, there were several positive signs.
    "There are still no signs of serious second-round effects
from the oil downturn, sectoral or geographical. Quite the
opposite, it seems that growth outside the oil sector is
accelerating," Danske said.
    Danske believes the Norwegian central bank's interest key
policy interest rate has bottomed out at 0.50 percent, and that
it will be kept steady in 2017.
    In its December monetary policy report, Norges Bank said it
would probably keep 0.50 percent in 2017 an into 2018.

Norway economy forecasts (numbers in percent, estimates from
September in brackets):

                               2017          2018  

 MAINLAND GDP                1.8   (2.3)     2.2       
 PRIVATE CONSUMPTION         2.0   (2.2)     2.2 
 UNEMPLOYMENT (NAV)          3.0   (3.3)     3.0

 (Reporting By Ole Petter Skonnord, editing by Terje Solsvik)

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