As we examine the macroeconomic landscape of the Nordic countries in Q3 2024, distinct patterns emerge that highlight the varied economic health and challenges faced by each nation. Norway stands out with impressive GDP growth and a robust job market, while Sweden and Finland grapple with higher unemployment rates and structural concerns. Denmark exhibits stability with low unemployment and strong productivity, yet faces its own set of economic dynamics. This overview delves into key indicators—ranging from GDP growth and unemployment rates to inflation and wage trends—offering a comprehensive snapshot of the region’s economic performance and outlook.

Nordic KPIs Q3 – 2024 

What can we conclude from this?

Based on the Q3 2024 Nordic macroeconomic indicators we can see the following:

GDP Growth Rate
Norway leads with an annual GDP growth of 4.2%, significantly higher than the other Nordic countries. Sweden shows minimal growth at 0.5%, while Denmark has moderate growth at 3.4%. Finland, however, is experiencing economic contraction with a -1.2% growth rate, indicating challenges in its economic momentum.

Unemployment Rate
Denmark has the lowest unemployment rate at 2.6%, reflecting a strong job market. In contrast, Sweden and Finland show elevated unemployment rates at 8.2% and 8.1%, respectively, which may indicate structural issues. Norway’s unemployment rate is moderate at 4%.

Inflation Rate
Inflation is most pronounced in Norway (3%) and least in Finland (0.8%), suggesting stable prices in Finland but potentially more significant cost pressures in Norway.

Interest Rate
Norway also has the highest interest rate at 4.5%, potentially to control inflation. Sweden and Finland have relatively moderate rates at 3.25% and 3.4%, respectively, while Denmark has a lower rate of 2.85%, which could support borrowing and spending.

PMI
Norway and Sweden have Purchasing Manufacturing Index (PMI) values above 50 (51.8 and 51.3), suggesting expansion in manufacturing. Data for Denmark and Finland are unavailable, but the values indicate resilience in the Norwegian and Swedish manufacturing sectors.

Labor Market:

• Labor Force Participation: Sweden has the highest participation rate at 74.9%, showing strong workforce engagement. Finland, at 67.4%, has the lowest rate, which may reflect demographic or employment challenges.
• Youth Unemployment: Sweden’s youth unemployment is the highest at 25.9%, a concern for future workforce stability. Norway has the lowest youth unemployment rate at 12.4%.
• Job Vacancies: Norway leads in job openings (107,600), followed by Sweden and Denmark, with Finland having the fewest, indicating varying levels of labor demand across these countries.

Productivity and Wage Growth
Denmark leads in productivity (114) among reported figures. Wage growth is highest in Norway (5.15%) and lowest in Finland (1%), highlighting disparities in earnings growth, possibly linked to inflation and labor market conditions.

Overall, Norway demonstrates strong economic growth and a relatively balanced labor market, while Sweden and Finland face higher unemployment and youth joblessness challenges. Denmark has stable productivity and low unemployment, although wage growth and inflation rates vary across these countries.

It will be interesting to see what the numbers tell us when we wrap the year up in two months’ time.