Norway will experience a slowdown in employment growth this year as exporters and manufacturers scale back hiring amid a strong krone and weak demand from Europe, according to the Confederation of Norwegian Enterprise.
Companies represented by NHO, Norway’s biggest employer group, plan to increase the size of their workforce by 0.8 percent in 2013, less than the previous estimate of 1.6 percent, the group said in its quarterly survey of 2,700 companies. Industrial organisations expect a 0.3 percent decline in employment this year, according to the report.
“The weak global economy is now fully impacting the Norwegian economy, leading to a marked slowdown in economic growth,” Dag Aarnes, deputy director at the Oslo-based group, said in a statement. “More cautious households and fewer orders to Norwegian producers from the oil sector are also dampening growth.”
A recession in Europe has started to hurt the world’s fourth-richest nation per capita. Exporters have struggled to cope with a record high import-weighted krone and slowing demand from the debt-burdened euro area.
Norway’s economy will expand at a slower pace than previously forecast as sales abroad stagnated, Statistics Norway said on May 30. The mainland economy, which excludes income from the oil and shipping industries, will grow 2.4 percent this year, down from 3.4 percent in 2012, the statistics agency said.
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