2013-01-01 01:45:53 - Norway Business Forecast Report Q4 2012 - a new country guide report on companiesandmarkets.com
The Norwegian economy has enjoyed the tailwind of a debtdriven 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-thandisastrous 1.4% in 2012, we see several years of subpar growth ahead as such macroeconomic imbalances come home to roost.
Norway´s relations with China are likely to deteriorate further if the Norwegian government follows through on reported plans to block China´s ambitions to gain permanent observer status in the Arctic Council. Whilst this poses little serious threat to Norway´s political stability or security situation, it could prove an impediment to cooperation between Norwegian and Chinese
firms in the energy sector.
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