Norway’s largest industry is experiencing a deep economic downturn.
A sharply rising costs as a result of strong investment growth meant that oil companies pressed hard on the brake.
Oil companies introduced restructuring programs and cut in their investment budgets, which in turn affects the companies that provide services to oil companies.
On top of this, oil prices fell sharply in autumn 2014 before a new fall last summer brought oil prices down to below 40 dollars a barrel. At the beginning of 2016, oil prices fell down to 27 dollars a barrel, before it slowly picked up.
drop in oil prices has contributed to a notified decline in oil investment – the main growth impetus for the Norwegian economy after the financial crisis – has become even more powerful.
the number of lost oil jobs on the Norwegian shelf is approaching 40,000.
The ruler still relatively large uncertainties around how powerful oil brake on the Norwegian economy – and how prolonged the brake is.
No comments:
Post a Comment