Nordea predicts that the Norwegian wage growth will increase by 3,7% next year, as unemployment will continue to decline. Is the optimistic vision set at the beginning of 2019 likely to come true?
- Are you looking for professional accounting services?
- Phone: +0047 93982173 XNUMX
- Service in Polish
- Discounts for new customers
- Topnor www.topnor.no
First Nordea Markets report
As every year, Nordea Markets presents a report in which it analyzes the Norwegian economy. What does this year's report say? According to the data, local Norwegian wages will be increased. Even though LO and NHO will want to maintain central wage arrangements, Nordea expects a 3 percentage point increase in wages this year.
[wc_button type = "primary" url = "[wc_button type =" primary "url =" [wc_button type = "primary" url = "[wc_button type =" primary "url =" https://web.facebook.com/ radionorwegia / "title =" Like us on Facebook! " target = "blank" url_rel = "" icon_left = "facebook-f" icon_right = "" position = "center" class = ""] Like us on Facebook! [/ wc_button]
Unemployment is falling
Nordea also examined the previous year and it turns out that in 2018 the wage dynamics was slightly below 3%. Unemployment in Norway continues to fall therefore, this is the main reason why wage growth will accelerate and reach the targeted 3,7% next year. Experts expect inflation to reach 2% this year and 1,9% next year. If this result were achieved, then most Norwegians could expect to receive significantly more money for trading. Unfortunately, it's crucial interest rates will continue to remain at a very low level.
Read also: How much do you have to earn to get a mortgage in Norway?
Will the recovery of the economy turn into its crisis?
Nordea Markets in its report this year announces that the growth of the Norwegian economy will continue. It is estimated that this year it will go up to 2,6%, and in the next year it will drop to 2,1 points. interest. Last year, DNB Markets presented its forecast, which perfectly reflects what is happening now. If their assumptions are correct, in 2021 the revival of the Norwegian economy will eventually turn into a crisis.
Very slow increase in interest rates
Assumption in 2021 the Norwegian economy will be affected by the crisis, resulting in a lower rise and fall of key interest rates - says economist Kyrre Aamdal. Going forward, and given the continued low interest rates, Nordea Bank must proceed very carefully in its actions. Meanwhile, the central bank decided to raise the main interest rate twice this year to 1,25%.
Read also: Taxes in Norway 2019 - what will change?
The recovery of the economy may surprise us even more
Although there are currently many risk factors in the world that directly inhibit certain actions, the economic recovery may still surprise us. Commercial war, a strong international slowdown, numerous financial turmoil, and falling oil prices are few of the risks. However, Norway has several national conditions that may surprise us very positively in the future. Nordea Bank has announced that the current brakes may turn quickly, so they will not have the brakes to raise interest rates faster.
