So is your economy in 2017 – NRK

Not since the early 80s has reallønningene evolved so weak that in 2016.

norway has for many years been accustomed to the fact that wages have grown much stronger than prices, says governor Øystein Olsen

Photo: Grøtt, Vegard Wivestad / NTB scanpix

STATISTICS norway and the Ministry of finance in their forecasts that the purchasing power falls significantly in 2016, with respectively 1.2 per cent and 1.0 per cent.

Norges Bank Also believes that the wages are more than eaten up by a rise in prices in 2016, so that you in reality get less for every dollar you earn.

It turned in 2016. Then we got a lower average wage growth than inflation, so that people’s purchasing power actually goes down, ” says governor Øystein Olsen in the Political quarter, on the NRK1 and P2 on Wednesday morning.

Less money to spend

while wages are expected to rise by 2.3 per cent, expecting the central bank that prices are rising far more, the entire 3.6 per cent according to the central bank’s latest calculations.

– One may be a little in doubt as to whether this has dawned on people yet, ” says Olsen.

chief economist Kari Due-Andresen at Handelsbanken, says to NRK that it is the first time in a long time that this happens. Usually, people have gotten a little more money to spend every year here in the country, in the several decades in a row.

We do not believe that wage growth could rise much going forward, with respect to competitiveness against other countries, ” says Kari Due-Andresen, chief economist in Handelsbanken.

Photo: Paal Audestad

It is the first year in a long time, that this is a fact. We also believe that there is a weak development in wage growth going forward, ” she says.

Handelsbankens economists believe that the weak reallønnsutviklingen going to put a damper on how much people are going to shop the nation’s stores in the coming year.

Thus put a damper on konsumveksten.

Better in the coming year

chief analyst Erik Bruce at Nordea Markets believe, on their side, that the fall in the goods is transitory, and largely due to a temporary effect that imported goods have become more expensive.

we have seen in the stores, people get less for your money. So there is a negative temporary effect we have now, the weak dollar which will eventually disappear. When will goods be any better than it is this year, ” says Bruce.

the Inflation rate will fall when the effect of more expensive imports falls away, ” says Erik Bruce, chief analyst in Nordea Markets.

Photo: Simon Solheim / NRK

And the governor Øystein Olsen agree that 2017 will be a little better financially with a view on the economy for most people.

But believes there is still a long way to go to kjøpefesten in the 00′s.

– So we see the car purchasing power increase a bit again in 2017. But I emphasize a little, in relation to the phenomenal kjøpekraftsutviklingen norwegians have had in the 2000s, ” he says.

Also, STATISTICS norway and the Ministry of finance predicts a weak positive increase in reallønningene in the coming year, with respectively 0.4 and 0.7 per cent.

the central Bank predicts that the current low level of styringsrenta will stay for the next two years of 0.5 per cent.