This will 2019 mean for your wallet

piggy bank Norway state budgetPhoto: Pixabay

This will be 2019 for your wallet

Higher wages, better purchasing power and lower price inflation. 2019 will be a very good year for the Norwegian economy believe the economists NRK news have talked to.

“Can’t you show me the figure that demonstrates real wage growth,” said Kari Due-Andresen, chief economist at Handelsbanken, to a colleague.

They smiled when the graph appeared on the screen.

It is six years since real wage growth has looked like this.

Not since 2013, have real wages increased as much as they will in 2019.

This means wage increases minus price inflation.

That’s good news. Most Norwegians in work will have more to do next year according to the experts.

Positive growth in households

2018 is over and Norway’s foremost economic experts predict what the new year will bring.

“We believe consumption will increase in 2019,” said Due-Andersen, chief economist at Handelsbanken.

She said that Norwegians have been a little reserved, and that the mood in Norwegian households has slowed down in the past year.

“It is probably because of what is happening in the housing market, but also the turbulence that has been global. But we believe it will be a tight labour market in 2019, which contributes to positive growth in households,” she said.

Most will have more to spend with

Chief analyst at Nordea Markets, Erik Bruce, believed that 2019 will be a good year for the Norwegian economy.

“The oil companies are planning for heavy investments offshore, which is very good for the Norwegian oil-related industry that has had bad years. Consumers are getting good real wage growth,” said Bruce.

Statistics Norway predicted that purchasing power will increase by 2.5% in 2019, but those with mortgage loans must deduct increased interest rates, which will most likely increase by 0.5%.

“Given that most people get about 2% increased purchasing power, for most people it will be more than enough to compensate for interest rates going up a bit,” said Bruce.

But despite good predictions, turmoil in international markets is a major factor for uncertainty for small Norway. In addition, the winter’s high electricity prices could affect your wallet.

© #Norway Today
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