Norway's economy experiencing its biggest decline in 15 months

Northern Europe is experiencing hard times due to the slowdown of the Norwegian economy. Mainland GDP, which excludes Norway’s offshore industry, contracted 0.4 percent from March 2023, Bloomberg reports.

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This decrease was the third monthly fall in the last four months, the publication reports, citing the latest data. Norges Bank and analysts surveyed by Bloomberg had expected an increase of 0.1 percent.

The fresh data is unlikely to prevent the central bank from ratcheting up its tightening plan next week after an unexpected acceleration in core inflation to a record high in May.

The rate hike began to spur even earlier data, including a weaker-than-expected Krone and the government’s increased spending from the oil fund.