Oslo Børs
Benchmark index in 2021
World index in 2021 (USD)

Financial markets and the economy in 2021

Good news, bad news and real news

In 2021, bouncing back from the depths of the pandemic, we got a lot of good news. But not good enough for the stimulative policies to be pulled back. We also got an indisputable reminder of what really drives financial market returns.

At the outset of 2021, financial markets had shaken off the shock from the outbreak of the pandemic in the winter/spring of 2020. Governments in numerous countries had launched comprehensive countermeasures, with swift interest rate cuts, bond purchases, expansionary fiscal policies and direct support to vulnerable companies and consumers. This had helped calm nerves and build confidence, which in turn had lifted financial markets to new all-time highs.

Not until 2021, however, did these countermeasures begin to take full effect. Meanwhile, a lot of demand had been put on hold due to uncertainty and direct restrictions on the supply side, not least travel, restaurant visits and other services with physical customer contact. With the easing of restrictions, households had significant amounts of cash ready to be spent.

We thus entered 2021 with strong potential demand in the world economy.

And we were yet to worry about Russia and Ukraine.

More on the market and the economy this year.

2021 in a nutshell
OSEBX 23.4%
S&P 500 return 28.7%
MSCI World net (USD) 21.8%
3-month NIBOR from 0.49 to 0.95%
10 year Norwegian Treasury from 0.96 to 1.70%
10 year Swedish Treasury from 0.03 to 0.23%
10 year US Treasury from 0.92 to 1.51%
Brent Blend from USD 51.80 to USD 77.78
USD/NOK from 8.53 to 8.82
EUR/NOK from 10.47 to 9.99
USD/SEK from 8.19 to 9.04
GDP growth, global 5.9%
GDP growth, Norway 3.9%
GDP growth, Sweden 5.2%
GDP growth, Mainland Norway 4.2%

Sources: Oslo Børs, S&P Dow Jones Indices, MSCI, Norges Bank, FactSet, IMF, SSB, SCB, Riksbanken, Pareto.