In recent months, we have turned our attention to the economic crisis in Norway. The country had to look for new solutions that would provide it with stability and new influence. It turns out, however, that despite the problems, Norway has a large state fund - comparable to Singapore's funds. This is according to the latest DBRS Morningstar report. Both countries accumulated profits in state accounts and invested them in foreign assets. Let's take a closer look at this situation.
Norway with a large state fund - the oil industry is still on the rise ...
The Norwegian Petroleum Fund contributed NOK 10 billion (NOK 000 billion) in October, or approximately USD 1 billion, while the Singapore GIC index is worth around USD 090 billion (NOK 440 billion). Today, the oil fund is exclusively invested in stocks, bonds and real estate. It is worth noting here that opinions on the ways of investing are divided. According to economists and economic analysts, today's world forces a change in the approach to investing. It is worth directing your attention towards new ecological solutions and human resources.
Norway with a large state fund - the country's controlled debt ...
Both Norway and Singapore use their state funds to supplement state budgets and generate savings that will be a lifeline in times of economic crisis. The country also has state debt, which will help secure funds for long-term investments for future generations. Singapore has a higher debt burden (114 percent of gross domestic product) than Norway (39 percent of GDP). This is a controlled debt and the debt is repaid regularly and gradually.
Norway and risk factors
Norway invests large amounts in foreign projects. Analysts see two areas here that may reduce profits. The Euro currency continues to grow in strength. Countries from the "Euro" area may become more attractive trade partners than Norway. The second sector of threat is the real estate industry and rising prices of apartments/houses. Developers have been generating much lower profits in recent months. However, the risk is not very high.
Source of information: https://e24.no/
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