Expert: euro crisis to reach Norway

A top financial expert has said that Norway will not remain immune to the euro crisis.

According to Steven Desmyter of UK-based investment firm Man Investments, Norway is already beginning to feel the impact of Europe’s financial woes as the kroner climbs in value whilst investors seek refuge in the Scandinavian nation.

Mr Desmyter said in an interview with the NRK news agency, “The Norwegian export industry with the exception of oil and gas industry will become less competitive, and you may have problems with deflation. Nevertheless, this is peanuts in relation to the problems that other countries are struggling with.”

The evaluation follows similar issues raised by Norwegian Prime Minister Jens Stoltenberg, who said last week that Norway should remain vigilant and should not count on oil and gas to keep the country safe from the nearby crisis. He said during the interview with the VG news agency, “We saw it in the 90s. Norway experienced a banking crisis, debt crisis and high unemployment then. We also had oil revenues [then]. It’s naive to believe that oil revenues will always save us”.

Moreover, the news follows recent reports that housing prices have seen substantial and persistent rises in recent weeks. Swedbank First Securities chief Harald Magnus Andreassen also said that the country has seen continued low interest rates.