2.7% pay raises helped avert strike

Marathon mediation through the weekend finally warded off a major strike in Norway that would have pulled more than 30,000 workers off the job and distrupted ferry- and bus service around the country. The breakthrough came after Norwegian national employers’ organization NHO gave up a controversial claim that would have resulted in a loss of […]

Central bank confirms rising rates

Norway’s central bank left the country’s key policy rate unchanged on Thursday at 0.0 percent, despite higher underlying inflation than expected and much higher housing prices. Rates will “most likely” be raised, however, later this year and “somewhat faster” than earlier thought. Norges Bank‘s committee in charge of monetary policy and financial stability voted unanimously […]

Solberg budgets for better times ahead

Prime Minister Erna Solberg found a way around her own government’s rules against meetings this week, to start hashing out a state budget proposal for 2022. She and her ministers face enormous budget uncertainty, over the state of a post-Corona economy and whether she’ll still be in office to carry it out, but her government […]

Interest rate hikes expected soon

UPDATED: Soaring residential real estate prices have sparked expectations that Norway’s record-low interest rates will rise at least once if not twice later this year. The housing market is hotter than ever, and experts view interest rate hikes as the only means of cooling it down and easing an affordability crisis. “We expect ongoing growth […]

Norway’s glory days may be numbered

The Corona crisis of the past year may at the very least serve as somewhat of an equalizing factor worldwide. For Norway, it’s meant a sharp economic decline after years of oil-fueled growth that may leave it with many of the same challenges faced by most all other countries. Norway’s state statistics bureau SSB (Statistics […]

‘Uncertainty’ keeps key rate at zero

The Norwegian central bank’s key policy rate, kept at 0.0 percent this week, isn’t likely to rise any time soon. The Corona crisis continues to hold back economic growth and rates won’t rise until that changes. Economic development, or lack thereof, “is in line with projections,” said Norges Bank Governor Øystein Olsen when confirming that […]

Housing sales and prices set records

Even in the midst of the Corona crisis, or perhaps because of it, Norwegians bought and sold homes at levels that set new records for both prices and sales volume last year. Never before have so many residences changed hands, even in the usually quiet month of December. Year-end figures from the national real estate […]

Interest rates remain at 0%

Norway’s central bank decided on Thursday to keep its key policy rate at its record low of 0.0 percent, but noted that interest rates may rise sooner than previously predicted after vaccination programs get underway. The country’s currency, meanwhile, was ending the week much stronger than when it began. Norges Bank Governor Øystein Olsen thinks […]

Long-term jobless ‘alarmingly high’

Closed restaurants and empty streets have added to the November gloom, and sent Norway’s numbers of “long-term unemployed” up nearly 72 percent so far this year. The increase is blamed almost entirely on the Corona crisis that’s now turning temporary layoffs into terminations. “Long-term unemployment is now at an alarmingly high level,” says Hans Christian […]

Economists hail restrictions now

Several Norwegian economists have come out strongly in favour of the stricter Corona containment measures now in effect nationwide, no matter how painful they are for many businesses and industries. They think it’s better to take economic losses now, instead of even bigger losses and more bankruptcies later. “The authorities shouldn’t have caved in as […]