2012-11-14 20:58:57 - Norway Business Forecast Report Q3 2012 - a new country guide report on companiesandmarkets.com
The Norwegian economy has enjoyed the tailwind of a debt-driven property boom over the past two decades â a fact we suspect will soon prove a serious macroeconomic weakness. Household debt and property prices appear to have reached unsustainable levels. Although we forecast growth at a less-than-disastrous 1.4% in 2012, we see several years of subpar growth ahead as such macroeconomic imbalances come home to roost.
We expect a continued warming of relations between Russia and Norway, in part propelled by the former´s desire to tap into Norwegian expertise and cooperation in the development of oil reserves in the Barents Sea and the wider Arctic region. Stronger ties with Russia, particularly in the Arctic, will strengthen Norway´s position in its diplomatic
dispute with China.
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