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Nordic Outlook: Hard policy choices ahead

The easing of restrictions has improved the GDP growth outlook in the Nordic economies. Despite uncertainty about the pandemic, the economic recovery has regained momentum in Norway, mainly driven by strong consumption supported by fiscal stimulus. GDP will grow by 2.7 per cent this year and 3.7 per cent in 2022. Despite below-target inflation, Norges Bank will raise its key rate in September and probably also in December.

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