If the world gets hit by a new financial crisis, the timing couldn’t be worse for the Norwegian economy, the Head of the Central Bank Øystein Olsen warns.
We are facing particular challenges. But if a new downturn internationally should take place while we are still in process of reorganizing, the timing is bad, Olsen says to news channel NTB said.
This is probably the biggest concern from our point of view and for the outlook of the Norwegian economy, he says.
Olsen made his annual speech in the premises of Norges Bank’s on Thursday . Powerful stock market unrest since January has made financial analysts warn that another financial crisis may be developing.
– If we are to witness a new global downturn now , even the central banks will not be of much help, Olsen observes.
The reason for this is that the world economy is still struggling with the consequences of the financial crisis in 2008. This has led to a period of historically low interest rates both in Norway and abroad and lead the central banks into new and uncharted territories.
– Most likely, the era of low interest rates is far from over, said Olsen in speech.
Source: NTB scanpix / Norway Today