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Oil at $50 worse than global financial Crisis

Oil at $50 worse than global financial Crisis

OSLO: When the financial crisis brought the global economy to its knees, Norway was largely unscathed. But oil under $50? That’s another story.

Unemployment peaked at about 3.7 percent in 2010 in the post-crisis aftermath. Falling oil prices already pushed the jobless rate to 4.3 percent in May, the highest in at least 11 years, and that was before a renewed drop in Brent crude.

Here are a few ways it’s harder for Norway to deal with plunging oil prices than a global financial meltdown.

  1. Norway is heavily reliant on oil

As a key driver for growth in Norway, it was largely its oil wealth that kept the nation afloat during the financial crisis.

But with its key sector in trouble, there are few other industries for the nation to look to for growth.