Property markets in some specific regions, especially Oslo, continued to boom in 2016 although Norway is dealing with an amount of financial uncertainty due to dropping oil costs. Borrowers are benefiting from low rates of interest by borrowing sums that are higher than ever.
CARD GROSS FINANCING CONTINUES TO REVEAL MOST RAPID GROWTH
Card gross financing continued to find the strongest increase in beste forbrukslån financing driven by the sudden rise in credit debt that was private.
ISSUES IN MARKET EXPOSE ELEVATED RATES OF PRIVATE INDEBTEDNESS
Some issues were exposed by falls in petroleum costs in the Norwegian market with unemployment rising quicker than in 2015 as petroleum-related economic sectors started to feel the pressure of lower yields. This served to emphasize the possible dangers of household debt that was high across Norway, which will be amongst the greatest in the planet as a result of elevated rates of self-assurance and home ownership in other styles of financing. Any additional weaknesses which can be exposed in the Norwegian market could result in a debt disaster.
LOW INTEREST RATES LIKELY TO STAY
Continuing economic uncertainty is likely to stay in the initial phases of the forecast period in Norway and continuing low interest rates will mirror this. This led to a rise in the elevated rates of household indebtedness and may support borrowing.
The outstanding balance of consumer financing in Norway is anticipated to outperform the powerful increase in the review interval also to develop strongly within the forecast period. Higher rates of family debt will drive this as a result of continual borrowing in other regions including card financing and automobile financing, in addition to continuing strong increase in property markets.