After more than a year and a half of intrusive corona measures, there was a full party over large parts of the country when Norwegians were finally able to celebrate the full reopening of society just over a week ago.
But as after any party with a little too much in the glass, Norway is now waking up to a collective hangover that will affect both the wallet and the business community, warns Christian Aandalen, partner and general manager of the debt collection company Fair.
– Tightens the money tap again
Because at the same time as airlines and travel agencies are experiencing an immediate sales boom, nightlife is celebrating strong revenue jumps and clothing stores are preparing for a stream of customers, dangerous signals are emerging.
Norges Bank has raised the key interest rate, experts are warning of potentially sky-high electricity prices in the future and fuel prices are creeping ever closer to NOK 20 per liter.
The debt collection figures are worrying: – Not nice
“We expect Norwegians in general to tighten the money tap again and that it may not be the shopping party the business community has envisioned,” warns Per Fjærestad in Credisafe and Christian Aandalen in their recent report Credit Quarterly.
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– The sum of this can give the impression that we are facing a challenging winter. It is far from certain that the reopening of Norway will lead to the shopping spree some players in tourism and trade have hoped for, Aandalen believes.
Specifically, he fears that the much-discussed triple jump, with higher interest rates, higher electricity prices and more expensive fuel, will make a sharp dent in Norwegians’ personal finances.
– Now the electricity prices are soon forgotten, because now it has the bucket down. But we believe that all this plays into psychology. Increased fuel prices, interest rate increases and potentially higher energy prices, says Aandalen.
– It comes into play at this trade party. We think it can ensure that it does not become as big as many might hope for. I do not think this shopping party will be as big as it has been reported.
«Trippelsmell»
One thing is Norwegians who have recovered well from the crisis, but may not want to use so much of the saved funds. Another thing is those who have not had it as easy.
Municipal debt collection bill: – Drone and clutter
The increased prices will also make it more difficult for many to service both invoice requirements and debt, Aandalen believes.
– In addition, prices are generally on the rise, as a result of both increased inflation and product shortages due to logistical problems. This will only exacerbate the economic challenges.
The hardest hit are the low-paid and those who go on social security, Fair Group believes.
– There is no doubt that inequalities are increasing, and the “triple bang” will probably contribute to even greater differences.
Aandalen says they are concerned about the growing gap between rich and poor.
– On the same day as we released our report, figures from Nav showed a sharp decline in the number of unemployed, but those who have been outside the labor market during the pandemic have not been able to save money along the way. They do not have the buffer at high fuel prices and high electricity prices. The poor have not been first in line to buy electric cars either, so this will hit them much harder, says Aandalen.
They are excited about whether the incoming government will launch some support packages for those who are having the most difficulty.
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