Norway economy shrinks 2.5pc

14 February, 2021 12:00 AM printer

OSLO: As a result of the coronavirus pandemic, Norway's economy contracted 2.5 percent in 2020, a historic setback but a limited one compared to many other countries, official data showed Friday.

The country even saw growth in its gross domestic product (GDP) of 1.9 percent in the fourth quarter, according to Statistics Norway, reports AFP.

"Preliminary accounts show that the downturn in 2020 was somewhat lower than we feared when restrictions were at their peak in March and April," Pal Sletten, head of National Accounts at Statistics Norway, said in a statement. "This is, however, still the largest annual downturn measured for the mainland economy since estimations began in 1970, and it is probably the greatest economic downturn since the Second World War," Sletten added.

The figures are better than those anticipated by the government and the Bank of Norway, and much better than those posted by other European countries. On Friday, the UK reported a record 9.9 percent contraction to GDP in 2020, while the eurozone has seen an average loss of 6.8 percent.