Steven Desmyter from British investment company Man Investments thinks Norway is not immune to an economic crisis and that pressure on the economy will continue.
He says that Norway is already feeling the negative effects because of the higher value of the krone as investors seek shelter from the storm, which hits the export industry.
The expert believes the crisis will be felt strongly in Norway if it worsens. He has emphasised that he is only expressing his view of the market.
“The Norwegian export industry with the exception of oil and gas industry will become less competitive, and you may have problems with deflation. Nevertheless this is peanuts in relation to the problems that other countries are struggling with,” he told NRK.
Prime Minister Jens Stoltenberg also spoke about Norway’s economic situation earlier this week, expressing concern over the future of the Euro and warning it would be naïve to believe that oil would keep Norway safe from economic crisis as well as
Steven Desmyter’s comments come as Aftenposten reports that Norway’s house prices are continuing to rise. It was also explained that Norway has low unemployment and strong wage growth.
Harald Magnus Andreassen, chief economist at Swedbank First Securities told the paper, “On top of that comes very low interest rates and that Norwegian banks have had easy access to credit. They have been able to lend money without major problems, therefore.”