Economics Department

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Despite ongoing improvement following the financial crisis, the banking sector is still exposed to domestic property risks as falling house prices have put many households in a negative home equity position. Small and medium-sized enterprises (SMEs) face tight access to credit and have difficulties to grow.
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The income convergence process vis-à-vis the euro area has stalled, reflecting both a drawn out economic recession and an estimated decline in potential growth. The most important macroeconomic policy challenges are to sustain an emerging recovery and raise potential growth.
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Norway’s economy has continued to prosper, but the financial system needs to be resilient against possible systemic risk, and a vibrant entrepreneurial culture will be important to maintain sustainable growth in the future.
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