Norwegian Economy Surges 0.6% in Q2, Outpaces Forecasts

Norway's mainland economy demonstrated stronger-than-expected growth in the second quarter of 2025, with GDP rising 0.6%, surpassing forecasts of 0.3% and following a revised 1.2% increase in the first quarter. This growth excludes the oil and gas sector, highlighting robust performance in other areas of the economy and contributing to the strengthening of Norway's crown against the euro. Despite this economic resilience, Norges Bank has maintained its interest rate at 4.25%, though the stronger data is prompting speculation about possible delays in planned rate cuts. The steady expansion reflects a stable recovery phase, signaling potential continued economic growth beyond initial expectations. These developments are putting pressure on the central bank to reconsider monetary easing plans amid ongoing challenges. The economic surge underscores Norway's mainland sector as a key driver of national economic health.