Norway’s competitveness jeopardised by high labour cost, IMF says

A report of the International Monetary Fund indicates that Norwegians are paid too high for their work, jeopardising the country’s competitiveness.

Wages in Norway’s oil sector soared during the industry’s boom that ended in 2014, pushing labour costs up in other industries as well. The country, which is West Europe’s largest oil producer, managed to cope with the GDP drop caused by the slump in oil prices, the IMF says, predicting the country’s economy to grow by 1.75% in 2017 and 2.25% in 2018. However, Norway needs to restrain the rise in wages and implement reforms to boost competitiveness. According to a survey released by the country’s central bank, trade unions and employers count on an average wage growth of 2.5% this year.

- Týden -

31. 10. 2017