The EU believes in increased growth in Norway

Flag EU Norway 25th Anniversary EEANorwegian and EU Flags. Photo: Lise Åserud / Scanpix

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The EU believes the Norwegian economy will grow faster this year than last year and even slightly faster in the next two years, according to a new report from the union.

The full report looks at the economic outlook for the EU, but also contains a page on Norway. Our economy is considered to be in a period of moderate recovery, and the union expects gross domestic product to increase by 1.6 % this year, compared with 1.3 % last year. Over the next two years, they estimate annual growth of 1.9 %.

However, this is a smaller increase than next year’s state budget accounts for. There, an increase is expected from 1.3 % last year to 1.8 % this year. For next year, the growth forecast is 3.8 %, while it is set at 2.3 % in 2021.

The EU points out that the economy will receive less government assistance next year and that investment will increase less than before. In contrast, increased oil and gas exports and household consumption will more than offset this, according to the report.

Uncertainty in the housing market and record high private debt are the most important risk factors highlighted, and it is pointed out that Norwegian households are vulnerable if interest rates are raised or house prices fall significantly. Fluctuations in the oil price are cited as an uncertainty factor that can turn out both positively and negatively. In addition, weaker growth in key trading partners may adversely affect the Norwegian economy.

© NTB Scanpix / #Norway Today

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