This update explores some high level trends and legal
developments across some of Norway's key sectors that have an
international impact.
Q1 2023 was not anticipated to be a buoyant start to the year,
but the Norwegian economy has fared better than expected, with
unemployment remaining low and Confederation of Norwegian
Enterprise (NHO) stating businesses are overall quite optimistic
about the future. There is, however, anxiety about interest rate
increases, with the policy rate raised once more from 2.75% to 3%
on 22 March. Norway has lagged behind most of its trading partners
in raising its interest rates and this, combined with increased
market turbulence, has likely caused the NOK exchange rate to
depreciate to lower than expected, losing around 15% and 18% of its
value compared to EUR and USD respectively in the last 12 months.
This is a much discussed topic nationally, particularly with the
effect this has on increased prices for all households.
