In a country that is well survived in crisis, side-effects started to appear. While the eurozone was under the debt crisis Norway has been a heaven for investors. This triggered a rise in property prices. Now, local consumers are cautious because of the rising prices.
Authorities are trying to stimulate the economy and domestic demand, using funds from the National Welfare Fund.
In the 2nd quarter the economy of Norway, which amounts to $480 billion, grew by only 0.2%, confounding expectations of analysts, Bloomberg reports.
After the release of statistics Norwegian krone continued to decline and in total lost 1.5% for two days already.
Country’s largest bank DNB has issued a report saying that Norway is one of the few European economies whose growth does not accelerate in the upcoming year. Other experts also believe that the Norwegian economy in the current and next year will look weaker than other countries. Weak consumer activity has also been associated with increasing household debts.