Energy crisis fuels Norway’s currency

The Norwegian krone has strengthened markedly in recent weeks, as has the country’s economy in general. It’s a case of the rich getting richer, as the energy crisis boosts the price of Norway’s oil, gas and electricity at the expense of its trading partners. The krone (crown), which rises and falls in line with oil […]

Norway is getting ‘back to normal’

NEWS ANALYSIS: Interest rates have started to rise, oil and gas exports have more than doubled and Norway will soon even have a Labour Party-led government again, just as most of the country’s Corona virus-related restrictions are likely to be lifted. Post-pandemic “normalization” is clearly underway. Norway’s central bank confirmed on Thursday that it’s finally, […]

Economy rebounds, as expected

State statistics bureau SSB (Statistics Norway) has confirmed predictions of a rebound in the Norwegian economy as soon as Corona regulations eased. By June, the mainland economy (excluding offshore oil) was back to its same levels from before the pandemic began. SSB reported 1.4 percent growth in the second quarter, with 0.7 percent growth in […]

Krone dips on zero interest rate

Norway’s central bank (Norges Bank) kept its key policy rate at zero on Thursday. The lack of a long-anticipated increase was expected and the Norwegian krone weakened on the news, trading at just over NOK 9 to one US dollar on Thursday afternoon. The bank’s board that decides interest rate levels and the bank’s governor, […]

Rates to rise as economy rebounds

Norwegian economists are predicting brighter days ahead and Norway’s central bank is following through with predictions of its own: Interest rates will probably rise in September and a few more times during the next year, but will continue to remain historically low. Norges Bank quickly brought rates down to zero when the Corona crisis first […]

Norway plots its path out of crisis

Finance Minister Jan Tore Sanner admits to a lot of uncertainty regarding prospects for renewed economic growth in Norway. The revised state budget he proposed this week to bring the country out of the Corona crisis was nonetheless getting generally good reviews, despite its record withdrawals from the Oil Fund. “The government is burning through […]

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 […]