Norway

The sharp oil price slump in 2014–15 has hurt Norway’s oil and gas sector, with spillover effects on supporting industries across the supply chain. Mainland growth fell to its lowest level since the 2008/09 crisis at only 0.9 percent last year. However, the economy turned the corner late last year, supported by domestic demand, with unemployment falling from last summer’s peak. Meanwhile, house price inflation accelerated to double digits in the second half of 2016, resulting in a further build-up of imbalances. Productivity growth has been low since the mid-2000s and labor force participation rates are falling, particularly for men and the young, in the face of aging.