Norway faces a severe economic crisis
The Norwegian government has said that the country is facing a severe economic crisis caused by the pandemic and its aftermath. The last time the country experienced such difficult times was during World War II.
Last year Norway’s GDP fell by 2.5%, which is the worst result for the country’s economy since 1970. At the moment, some of the losses have been compensated and the main processes have been restored, but we cannot speak of a significant improvement.
To analyze the GDP, official statistics took into account almost all sectors of the economy, with the exception of oil production and logistics. The results of the study show that in general the country’s population has become poorer, although not by much. The authorities note that Norway is one of the states that managed to complete last year with minimal losses and enter the current year. This is especially true for health care and the economy.
The problem of unemployment remains unresolved and continues to grow. During the peak of the pandemic it rose from 2% to 10%, then the rate gradually went down. In addition, the transport segment, tourism, entertainment and others have been significantly affected by the pandemic.In Norway the improvement in the epidemiological situation has become noticeable after the majority of the population has been vaccinated against coronavirus. Experts warn that the recovery of these markets will take quite a long time, and it is worth thinking about continuing to provide various incentives. At the same time, investment projects have resumed, which indicates optimistic expectations for the near future.
One of the options to get Norway out of the crisis is to increase oil production. To this end, it has already been decided to start the development of 125 new fields, which are located on the sea shelf. They will make it possible to increase the number of jobs, and in the future will bring substantial profits to the economy. Another plan for the development of the industry is the development of facilities in the Arctic region.
Last year, domestic consumption fell by almost 10% compared to 2019. In 2021, the situation has improved, and this figure is steadily growing.
After the pandemic and the crisis, the Norwegian government thought about the development of those segments that will develop more sustainably even in a situation of market instability. This includes the high-tech industry, where most everything is done by automated systems. Such innovations will be used in many industries, and will not interrupt activities during pandemic outbreaks or other major shocks.