The Norwegian economy has come back to normal after implementing the COVID-19 measures, said Statistics Norway today.
The government eased the restrictions and allowed people to gather after the rates significantly declined.
According to Statistics Norway, the economy saw a 0.7 increase in June based on the Gross Domestic Product (GDP).
Pål Sletten, head of national accounts at the data collection company, expressed his delight following this accomplished.
“It is a milestone in the completely unusual period the Norwegian economy has been in since March 2020,” said Sletten.
Excluding oil and foreign shipping, the Norwegian GDP saw a significant increase between the first and second quarters. GDP grew by 1.4 percent.
This indicates that the country may be over the worst economic impact ever after the COVID-19 struck the country.
Kjersti Haugland, the chief economist at the financial services group, expressed his hopes of more growth to come. While there will be growth, but the progress the economy saw is a milestone for the country.
“It shows that recovery is in full swing in the Norwegian economy,” said Haugland.
‘Activity going again’
It has been good news all week in Norway, with a number of parties and holidays this weekend. The Norwegian Confederation of Trade and Unions also celebrated the good news, hoping to ease the COVID-19 measures.
Following the same approach, the country may fully get back to normal by the end of 2021.
“We have relaxed the infection control measures. And we expect and hope that consumers will be in place,” said Roger Bjørnstad, chief economist at LO “And the companies will pick up the laid off and get the activity going again.”
“The second quarter has been stronger than Norges Bank has assumed,” said Haugland, “In this sense, current figures are something that supports Norges Bank being able to start raising interest rates in September.”
Higher interest rates will exert a positive impact on the payments in the market.