The investments in the oil sector will continue to decline in 2016, and the impact will spread in the economy, according to DNB Markets in their economic outlook for 2016. The unemployment rate may be the highest since 1972.
Analysts DNB Markets point out in their assessment of the situation in Norway that the growth in our economy was almost halved last year, primarily due to the fall in demand from the petroleum sector.
– The decline in oil prices has exacerbated the fall in petroleum investment, reduced costs in the supplier industries, muted optimism for companies and households and resulted in lower revenues for both state and private actors, say the analysts.
Source: NTB scanpix/ Norway Today
