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OECD expects slower economic growth in Norway

Staff Writer |
The Organization for Economic Co-operation and Development (OECD) estimates fall in economic growth in Norway during this and next year, online newspaper Nettavisen reported.

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In its annual report on global economic prospects, the OECD named housing prices a crucial uncertainty for Norway.

This year Norway is expected to have 1.8 percent of economic growth, which is down from 1.9 percent last year. The fall is estimated to continue and be down to 1.6 percent next year, the report said.

The OECD, however, believes that economic growth on Norway's mainland will continue to accelerate this year and unemployment is expected to decrease further, Nettavisen wrote.

Both the European Union (EU) and Norway's government predicted somewhat more positive development than the OECD: the revised national budget predicted GDP growth of 1.9 percent for both this year and next year, while the EU expects 1.8 percent growth in Norway this year and 2 percent next year.

Same as the OECD, the EU believes the biggest risk for Norway is the housing market.

Globally, economic growth is expected to be 3.8 percent this year and 3.9 percent next year, the OECD announced.

In addition, there is a threat in increasing international tension in trade policy, which will be an important discussion topic at the OECD ministerial meeting in Paris Wednesday and Thursday.

Norwegian ministers of finance, foreign affairs and trade are all attending the meeting, the report said.

New trade barriers can hit Norwegian exporters hard, especially if the EU also decides to increase tariffs. Norway has therefore required exemptions if such measures would become a reality.

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