Decent Q1 for most and surveys bode well for Q2

The latest national accounts data showed that quarterly GDP growth in most of the Nordic and Swiss economies picked up in Q1, led by Finland. The Finnish economy expanded by 1.2% q/q, followed by Denmark and mainland Norway with quarterly GDP growth of 0.6% in both, and then Switzerland with 0.3%. This was largely as a result of stronger domestic demand. By contrast, Sweden’s quarterly GDP growth slowed in Q1, from 0.7% to 0.4%. And Iceland’s economy contracted 1.8% q/q. In both Sweden and Iceland, net trade acted as a substantial drag on GDP growth, although Iceland also suffered from a big fall in investment. Looking ahead, survey indicators for almost all of the Nordic and Swiss economies point to an acceleration in annual GDP growth over the coming quarters. The exception continues to be Denmark, where the EC’s Economic Sentiment Indicator is consistent with annual growth slowing from Q1’s 2.2% to around 1%.