Gross domestic product (GDP) for mainland Norway grew by 0.9 per cent in the 3rd quarter, compared to an increase of 0.5 per cent in the two previous quarters. The growth was led by increased final consumption expenditure by households and general government as well as increased exports excluding crude oil and natural gas.

Seasonally-adjusted figures for the total GDP show a drop of 1.6 per cent. The drop stems from a substantial slowdown in oil and gas extraction due to planned maintenance on several oil fields in the 3rd quarter.

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“In Norway, inflation is low and somewhat below the central bank’s target of 2.5 per cent. Activity is increasing in the Norwegian economy, although there is still some margin of spare capacity. Interest rates in other countries are low. On balance, these factors suggest that the interest rate should be kept unchanged at 2 per cent”, Deputy Governor Jan F. Qvigstad said yesterday.

The first half of the year showed an increase in trade among Norway’s partners, growth in the Asian market and small signs of recovery of the euro zone.

On the opposite side of the spectrum, US growth prospects have been lower than expected.

Overall, the markets are still uncertain, even though they indicated more stability during the summer compared to Q1.

The bank also took into consideration Norwegian household debt has not risen because of the low interest. The rise in house prices has also been moderate.

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