The Norwegian economy and property market close to overheating

24.03.2011 07:25
Articles about real estate | The Norwegian economy and property market close to overheating Such fears are expressed independent analysts who are calling the Central Bank of Norway to take action. However, the authorities have been slow to report the highest level of risk and to immediately extinguish the "fire economically."

Norwegian krone over the past four years reached the limit values. Higher oil prices have caused unrest in the Middle East and North Africa, in March, further strengthened the position of the Norwegian currency against the euro, said "".

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"The strong crown does not make us worry," quotes the leadership of the Central Bank of Norway Bloomberg. Chief Financial authority of the country believes that its efforts to limit the rate of the crown will not affect the economic situation in the country, and banks provided more opportunities to raise interest rates and halt the rise of a bubble in real estate.

That is the situation in this segment of the economy precarious economists. The Norwegians scored too many mortgage loans, the level of mortgage debt increased faster than incomes. This could trigger a "bubble burst" in the property market in one of the most prosperous countries in the world.

Property prices in Norway on an annualized basis rose by 9.2% in February and 7,6% in January, reported the Norwegian Association of Realtors. According to independent analysts, raising interest rates will help restore economic balance. And, despite assurances by the Central Bank of that concern is unnecessary, he still plans to raise interest rates sooner than expected - in May or June 2011.

Meanwhile, Norway this year, tipped extraordinarily rapid economic growth - Norges Bank has improved its predictions. According to estimates of financiers, the economy of mainland Norway (excluding revenues from energy exports and shipping services) in 2011 will expand by 3.25% instead of the expected 3% previously. Norwegian exports excluding petroleum products will increase this year at 6.25%, which is twice the forecasts made in October 2010.
Content tags: Overseas property
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