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ECONOMY

Norwegian economy back to pre-pandemic levels

The Norwegian economy has bounced back to pre-pandemic levels following the government’s strategy to lift Covid measures and reopen society, Statistics Norway said Friday. 

Norwegian economy back to pre-pandemic levels
The Norwegian economy has bounced back to pre-pandemic levels. Photo by pichet wong from Pexels

Norway’s economy has returned to pre-pandemic levels following a 0.7 growth in June when measured by gross domestic product (GDP), statistics Norway announced on Friday. 

“It is a milestone in the completely unusual period the Norwegian economy has been in since March 2020,” Pål Sletten, head of national accounts at the data collection firm, said in a report.

Between the first and second quarters, Norway’s mainland GDP, when excluding oil and foreign shipping, increased by 1.4 percent. 

Statistics Norway believes that this is a sign that Norway is over the worst of the economic impact that Covid-19 has had on the country. 

Some economists, such as Kjersti Haugland, chief economist at financial services group DNB, expected slightly more substantial growth overall but agreed that the progress was a milestone for the Norwegian economy.  

“It shows that recovery is in full swing in the Norwegian economy,” the economist told public broadcaster NRK.

The Norwegian Confederation of Trade Unions has also welcomed the news and hopes that coronavirus measures being eased would help more companies bounce back and get more employees back to work.

“When we have relaxed the infection control measures, we expect and hope that consumers will be in place and that the companies will pick up the laid off and get the activity going again,” Roger Bjørnstad, chief economist at LO, told NRK. 

As a result of the economic growth, it is now expected that historically low interest rates will rise as early as September. 

“The second quarter has been stronger than Norges Bank has assumed. So in this sense, current figures are something that supports Norges Bank being able to start raising interest rates in September,” Haugland said. 

Higher interest rates would signal more expensive mortgage repayments for those entering the property market in the future and for those with flexible interest rate mortgages.

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SAS

‘We agree to disagree’: Still no progress in marathon SAS strike talks

By lunchtime on Friday, talks between the Scandinavian airline SAS and unions representing striking pilots were still stuck on "difficult issues".

'We agree to disagree': Still no progress in marathon SAS strike talks

“We agree that we disagree,” Roger Klokset, from the Norwegian pilots’ union, said at lunchtime outside the headquarters of the Confederation of Swedish Enterprise in Stockholm, where talks are taking place. “We are still working to find a solution, and so long as there is still some point in continuing negotiations, we will do that.” 

Mats Ruland, a mediator for the Norwegian government, said that there were “still several difficult issues which need to be solved”. 

At 1pm on Friday, the two sides took a short break from the talks for lunch, after starting at 9am. On Thursday, they negotiated for 15 hours, breaking off at 1am on Friday morning. 

READ ALSO: What’s the latest on the SAS plane strike?

Marianne Hernæs, SAS’s negotiator on Friday told journalists she was tired after sitting at the negotiating table long into the night. 

“We need to find a model where we can meet in the middle and which can ensure that we pull in the income that we are dependent on,” she said. 

Klokset said that there was “a good atmosphere” in the talks, and that the unions were sticking together to represent their members.

“I think we’ve been extremely flexible so far. It’s ‘out of this world’,’ said Henrik Thyregod, with the Danish pilots’ union. 

“This could have been solved back in December if SAS had not made unreasonable demands on the pilots,” Klokset added. 

The strike, which is now in its 12th day, has cost SAS up to 130m kronor a day, with 2,550 flights cancelled by Thursday, affecting 270,000 passengers. 

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