The economic crisis in Norway is a fact. Stock markets and oil prices plummet, the Norwegian krone collapses. Today, with a cool eye, we will consider how it will affect an ordinary inhabitant of the country of fjords. Let's take a closer look at the present and future of the real estate industry, tourism, industrial, and the labor market. Is there anything to be afraid of? Are the Norwegians having a worse time? What are the experts saying?
In times of crisis, many of us are afraid to make serious purchases. On the other hand, developers are forced to lower prices in the current situation. When we update house price projections in the future, we will likely see house prices lower. Fewer buyers mean lower prices. This will primarily affect the space of luxury premises and premium cars. This, in turn, is not the worst news for people with a mortgage loan. For most borrowers, the stock market declines, low value of the crown Norwegian also means lower loan installments.
What about the tourism industry and the oil industry?
The travel industry is definitely going through a worse time as the spread of the coronavirus means no tourism is needed. Financial uncertainty also discourages investment in tours and travel. However, the situation is interesting when it comes to the oil industry. Kyrre Knudsen - Chief Economist at Sparebank 1 SR-Bank presents the situation as follows:
So low the price of oil will have short-term consequences for Norway. There will be less cash flow to oil companies, which will affect negotiations between oil companies and service companies. At the same time, we must remember that oil companies have invested heavily in new projects over the past few years and it looks like they will continue to invest in them this year as well. This will create new jobs.”
The economic crisis in Norway. Surprisingly, the situation has a positive impact on the export industry and the number of orders carried out each week.
Source of information: https://www.nettavisen.no/
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