Norway economic confidence falters / News / The Foreigner

Norway economic confidence falters. Some Norwegians are beginning to lose confidence in the economy and their finances, fresh figures show. The Expectation Barometer, a quarterly joint survey by industry organisation Finance Norway and research company TNS Gallup, takes five factors into consideration. These are Norway’s economy last and next year, major purchases, and personal economy last and next year.

economy, spending, finance, paywall



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Norway economic confidence falters

Published on Wednesday, 17th February, 2016 at 20:55 under the news category, by Lyndsey Smith and Michael Sandelson      .

Some Norwegians are beginning to lose confidence in the economy and their finances, fresh figures show.

Percentage sign down
Percentage sign down
Photo: Lukiyanova Natalia/frenta


The Expectation Barometer, a quarterly joint survey by industry organisation Finance Norway and research company TNS Gallup, takes five factors into consideration.

These are Norway’s economy last and next year, major purchases, and personal economy last and next year.

The respective percentages for these are -63.6, -49.5, -5.4, 11.6, and 17.7. These are then compiled into a main indicator, which is adjusted for seasonal variations and random fluctuations.

Q1 2016’s main indicator is -16.2 per cent, the third-lowest in the survey’s history since it began some 24 years ago. It was -12.4 per cent in Q4 2015.

“Many people are probably influenced by the news which is dominated by the impact of low oil prices and the oil sector restructuring,” NRK quotes Finance Norway CEO Idar Kreutzer as saying.

The Organization for Economic Cooperation and Development (OECD) lists challenges ahead for Norway in its 2016 Economic Survey of the Scandinavian country.

OECD Director Bob Ford has said that “the oil price drop means that Norway will become poorer, and we will have structural budget challenges in the years ahead.”

The majority of Norwegians still believe that the economic future will be better next year, however, despite the findings by Finance Norway and TNS Gallup.

“Most people in Norway have a secure job. Unemployment has risen, but it remains at a low level in relation to Europe. Norwegian consumers have greater financial buffer than ever before in history,” remarked Idar Kreutzer.

He believes the indicator’s result is due to overreaction. At the same time, he warns that there will be consequences if doubts lead to cautiousness when spending.

“There’s a tendency for people to allow their consumption patterns to be influenced by these expectations to a greater degree. People changing their consumption patterns significantly would be worrying, as we’d then end up with a self-fulfilling prophecy,” Mr Kreutzer concluded.



Published on Wednesday, 17th February, 2016 at 20:55 under the news category, by Lyndsey Smith and Michael Sandelson      .

This post has the following tags: economy, spending, finance, paywall.





  
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