Nordic Economies Economic Outlook
Regional growth will rise to its past-decade mean in 2025. Recovering purchasing power will fuel a faster increase in private spending, while interest rates cuts will drive rebounds in fixed investment in all countries bar Iceland. Protracted weakness in German manufacturing, U.S. tariffs under President Trump and deteriorating investor sentiment are downside risks.
Nordic Economies Inflation
Inflation waned in Iceland and Norway and rose in Denmark, Finland and Sweden in October. Price pressures will accelerate towards central banks’ target next year in Finland and Denmark. Conversely, inflation is set to dip below the Riksbank’s target in Sweden, while slowing—but remaining above-target—in Norway and Iceland. Energy price spikes are an upside risk.
This chart displays Economic Growth (Real GDP, ann. var. %) for Nordic Economies from 2010 to 2023.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| GDP per Capita (USD) | 57,677 | 56,805 | 67,667 | 67,790 | 64,521 |
| Economic Growth (Real GDP, ann. var. %) | 1.8 | -2.1 | 5.2 | 2.1 | 0.6 |
| 1.0 | -3.5 | 5.4 | 2.7 | -0.5 | |
| 2.0 | 0.3 | 5.2 | 3.0 | -3.3 | |
| Industrial Production (ann. var. %) | 0.6 | -1.9 | 5.8 | 3.8 | 1.9 |
| Unemployment (% of active population, aop) | 5.3 | 6.6 | 6.3 | 4.9 | 5.3 |
| Fiscal Balance (% of GDP) | 2.6 | -2.7 | 3.1 | 9.0 | 4.5 |
| Public Debt (% of GDP) | 42.8 | 49.3 | 45.0 | 41.1 | 43.4 |
| Inflation (CPI, ann. var. %, aop) | 1.6 | 0.7 | 2.5 | 7.2 | 5.9 |
| Policy Interest Rate (%, eop) | 0.06 | -0.23 | -0.08 | 2.34 | 4.05 |
| Current Account Balance (% of GDP) | 4.5 | - | - | - | - |
| Merchandise Exports (USD bn) | 198 | 191 | 230 | 249 | 258 |
| Merchandise Imports (USD bn) | 179 | 170 | 215 | 240 | 220 |
| International Reserves (USD bn) | 11 | 13 | 17 | 16 | 17 |