SSB believes unemployment has peaked

Paint JobPaint Job. Photo .Construction company Koncept.

Unemployment has peaked, but will only decrease slightly into the next few years,  SSB estimates in its analysis of Norwegian and international economy.

-The standstill in the second half of last year has been replaced by slightly increasing growth in the mainland economy this year.

A reduced decline in oil investment and an increased housing construction and increase in exports could lead to an upturn from early next year, without any further decline in the interest rates,  Statistics Norway concludes in the analysis which was presented on Thursday morning.

In the analysis SSB brings attention  that oil prices have increased from very low levels earlier this year, but that there are still major negative impulses from the petroleum sector .

– Oil price began to drop in the summer of 2014 and reinforced the decline in petroleum industry investment, a decline that had already began  at the end of 2013. Because of this the Norwegian economy entered into a recession which might now be about to end, SSB writes.

SSB notes that a weaker krone, interest rates dropping to lower levels, and an expansionary fiscal policy has counteracted the effects of declining demand for Norwegian and international petroleum industry.

– Our estimates suggest that unemployment has peaked, but it will only go slightly down over the next few years.


Source: NTB scanpix / Norway Today