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Thursday, May 23, 2024

Household income under pressure

Most Norwegians now have less disposable income. State statistics bureau SSB (Statistics Norway) reports that it fell 4.3 percent from the second- to third quarter of this year, a period when food prices and mortgage payments jumped and electricity rates remained high.

A decline in returns on investment income (down 1.7 percent in the period from July through September) also contributed to a reduction in disposable income. SSB notes that it all means most people have less spending power as the Christmas holidays set in. That’s also been observed by several financial analysts, who predict a rash of bankruptcies especially within the bar and restaurant business.

“With the situation we see now, with rising interest rates and electricity bills, I fear it will be very quiet (at restaurants) after New Year,” Christian Aandalen, chief executive of the collection agency Fair Group, told newspaper Dagens Næringsliv (DN). He also noted a sharp rise in costs for restaurant and bar owners.

At the same time, however, unemployment remains low in Norway and many industries are doing well, especially oil and gas. SSB reported a 12.8 percent increase in gross national revenue from the second- to third quarter, hitting a record high of NOK 1,605 billion. staff



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