Norway's mainland economy grew by 1.8 percent last year, a pace described as 'normal' by the nation's statistics agency. The figures from Statistics Norway (SSB) show growth was driven by a robust private sector, strong household consumption following interest rate cuts, and continued heavy investment in the petroleum industry.
‘In 2025, consumption demand from households increased markedly, while there was still strong growth in petroleum investments and increased exports. All this helped to pull up activity in the mainland economy,’ said section chief Pål Sletten of SSB.
The data presents a picture of balanced, steady growth across key sectors, with the private sector outpacing the public. The numbers underscore an economy navigating post-pandemic normalization and a shifting global energy landscape with characteristic stability.
Private Sector Leads Balanced Growth
The 1.8 percent growth in Gross Domestic Product (GDP) for mainland Norway, which excludes offshore oil and gas extraction, represents a solid performance. A closer look reveals the private sector was the primary engine. Private business activity expanded by 1.9 percent, while public sector growth was more muted at 1.2 percent.
SSB notes that fiscal policy was set up for more subdued growth in public consumption and investment. This deliberate framing by the government in Oslo contributed to the divergence between private and public sector expansion rates. The figures suggest a conscious economic management strategy prioritizing private enterprise-led growth within the broader Nordic model.
Households Fuel Domestic Demand
A significant driver of the 2025 growth was a marked improvement in household consumption. Two interest rate cuts during the year, coupled with real wage growth, boosted household purchasing power. This translated directly into stronger domestic demand, providing a stable foundation for the economy amid external uncertainties.
‘The growth in consumption demand from households was significant,’ Sletten reiterated, highlighting its role in the overall economic activity. This rebound in consumer spending indicates that after a period of inflation and higher interest rates, Norwegian families regained financial confidence and increased their spending on goods and services across the country.
Petroleum Investment and Exports Provide External Lift
While the mainland economy excludes direct offshore production, investment in the petroleum sector remains a critical component of national economic activity. SSB reported that strong growth in petroleum investments continued in 2025. This sustained capital expenditure, likely targeting both legacy fields in the North Sea and newer developments in the Barents Sea, provided a major boost to related mainland industries like supply services, engineering, and maritime operations.
Increased exports from mainland Norway also contributed to the growth figure. This export performance, which includes everything from fish and metals to technology and services, helped balance the economy and leverage global demand.
Employment Growth Matches Population Increase
The health of the expansion is further reflected in the labor market. Employment in Norway increased by 0.7 percent in 2025, a rate approximately equal to the growth in the population. This parallel suggests the economy is creating enough jobs to absorb new entrants without leading to an overheated labor market.
The growth was nearly evenly split between the private and public sectors, mirroring the overall GDP growth pattern but on a more even keel. This stable employment picture, spanning from tech startups in Oslo to municipal services in Tromsø, supports continued consumer confidence and stable tax revenues.