Strong growth across several key industry sectors, in particular manufacturing, has seen Norway's economic upturn soar after one and a half year of moderate growth, according to Statistics Norway.
Total industry production increased by 2.5 percent during the quarter. Near half of the increase came from the country's food industry. Also the ship building and metal goods industry saw robust growth.
Nordea economist Erik Bruce said to Reuters: "It confirms the impression the Norwegian economy is developing better than we had thought."
Reasons for the upturn are expected tax reliefs, a continued low bank interest rate, and banks being more willing to give out loans.
Norway's growth has been unexpectedly strong in recent months with consumption, manufacturing and unemployment all faring positively. House prices have also recovered from falls in value at the end of 2013.
The news strengthened the performance of the Norwegian Krone on the stock market, up 3 øre (= 0.03 Krone) against the US Dollar and 4 øre (= 0.04 Krone) against the Euro.
DnB Markets of Norway's largest bank, predict economic growth in Norway will weaken into 2015.
A fall in oil investments of 15 percent will decrease the growth of the GDP from around 2 percent this year to 1.6 percent next year, according to DnB analysts in the largest bank of Norway.
Senior economist Kyrre Aamdal of DnB said to Nettavisen “We estimate the Bank of Norway will let the rate stay as it is until 2016. In March and September 2016 it will be raised by 0.25 percent each time, until 2.0 percent. After that we picture that the rate will be raised three times in 2017, each time with 0.25 percent.”
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