SSB (Statistics Norway) presented its economic report , where they make projections for the Norwegian and international economy. According to the report, the Norwegian economy has now reached to the positive level and increased domestic demand will keep growing in 2011.
Norwegian daily, Aftenposten reserved a large space for SSB's predictions. The newspaper wrote that SSB expects increased housing wealth, low interest rates and high real income growth, that would contribute to the relatively high consumption growth in the future. This means that consumption will remain high.
They estimate that consumption will increase more than revenues. On the other hand, the interest rate will remain at a standstill until the summer of 2011, then an increase of 0.25 percentage points and then two smaller increases are expected in 2011.
Thus, SSB report ask people to be prepared for bank lending rate, the payment, which will be 6 percent in 2013 and continue to rise.
SSB also expects an increase in wages by 3.5 percent. In 2013, they assume that Norwegian workers will have a better wage growth.
Better than expected
The development of the economic indicators of Norwegian economy is better than SSB previously expected. They adjust the forecast for GDP growth for mainland Norway from 1.5 percent to 2 percent.
– It seems that the Norwegian economy is in a cyclical upturn. It is primarily the development in domestic demand that drives the development, writes the report.