The OECD warns Norway about the risk factors that may threaten the Norwegian economy in the report World Economic Outlook, which was released on Tuesday.
The OECD (The Organization for Economic Co-operation and Development) states that the Norwegian economy wil generally be good in the coming years, but points out two risk factors that may threaten the expected development: The price of oil and the real estate market.
The report points out that Norway is still volatile when it comes to changing oil prices. "The ripple effects from a weak oil sector may be greater than expected," the OECD concludes.
In the report's main scenario, the mainland economy will pick up this year after a slight decline last year. The driving force of the petrolium industry will be weaker than in the past years, but non-petrolium related exports will pick up as the global economy get stronger.
The growth in the mainland economy is estimated to be 2,3 percent in 2014, and 2,8 percent in 2015 after a moderate growth of 2,0 percent last year.
The real estate market is the second factor that may threaten the positive development. Despite an expected growth in the household's disposable income, the real estate investments will be weaker, the OECD predicts.
Although the growth in household debt has fallen, the level is still high. According to the OECD the key interest rate should be increased towards the end of 2015 because total household spending will increase along with people's disposable income.