People in Norway are suffering from a deep lack of confidence in their country’s economy.
Confidence is at its lowest point in 24 years when the country was hit by a banking and housing crisis in the early 1990s.
Norwegian economic expectations and outlooks have been measured since 1992 by Gallup and Finance Norway, a financial lobby group. The latest survey has revealed a rather negative view of the economic future.
As western Europe's top oil and gas producer, Norway has had to deal with a sudden drop in oil prices, plunging from $115 a barrel in 2014 to just $48 a barrel today.
This has impacted on the Norwegian oil and gas industry, lowered investments and brought on a 10-year high unemployment, although the rate of 4.6% is an enviable one for most of the rest of Europe.
Nevertheless, citizens are feeling uncertain about job security and, consequently, about their finances for the coming year.
“A steady job and stable income are the cornerstones of private economy. Uncertainty about this makes people more cautious, reducing consumption and increasing savings. This reinforces the downturn and we risk getting into a vicious cycle with accelerating unemployment,” said the director of the Confederation of Norwegian Enterprise.
On Wednesday it was announced that Norway will dip further into its $858-billion sovereign wealth fund, the largest in the world, to combat the deeper-than-expected economic slowdown driven by low oil prices, falling private-sector investments and rising unemployment and to pay for an influx of refugees.
