Nordic Economies Economic Outlook
The region is forecast to shift into a higher gear in 2025 from 2024, fueled by a faster increase in private spending. Moreover, laxer borrowing conditions will underpin a recovery in fixed investment in all countries bar Iceland. The health of German manufacturing and investor sentiment, plus the extent of U.S. tariff hikes, are two-sided risks.
Nordic Economies Inflation
In November, inflation waned in Iceland and Norway, rose in Finland and Sweden, and held steady in Denmark. In 2025, average inflation will pick up in Denmark and Finland but slow in Iceland, Norway and Sweden. Meanwhile, price pressures will outpace central banks’ targets in Iceland and Norway. 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 | 67,883 | 64,425 |
| Economic Growth (Real GDP, ann. var. %) | 1.8 | -2.1 | 5.1 | 2.1 | 0.5 |
| 1.0 | -3.5 | 5.4 | 3.2 | -0.5 | |
| 2.0 | 0.3 | 5.2 | 1.3 | -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 | 4.04 |
| Current Account Balance (% of GDP) | 4.5 | - | - | - | - |
| Merchandise Exports (USD bn) | 198 | 191 | 230 | 250 | 258 |
| Merchandise Imports (USD bn) | 179 | 170 | 215 | 241 | 220 |
| International Reserves (USD bn) | 11 | 13 | 17 | 16 | 17 |