According to NHO analysis, Norwegian tourism fell between January and August. Compared with the statistics from the last time, the country’s tourism has declined. In the pandemic period, Norwegian tourism lost 68% of the income. Tourism in the country needs help because there is a requirement of covering the fixed costs in the circumstances of the coronavirus.
Without help, the country will experience the destruction of jobs. The industry needs coverage for up to 80% of expenses in the near future and as long as the covid will be present. As for now, the tourists which are coming from yellow areas (EU\EEA\Schengen) can enter the country without having to go into quarantine. If the tourists are from red areas (EU\EEA\Schengen), then they need to be in the quarantine for 10 days. It goes without saying that no one likes to go to the quarantine, so people are just staying at home and prefer to not travel for a while. It is true that Norway opened the borders for tourism on July 15th of 2020, but very few tourists are coming to Norway in these uncertain times. People are generally trying to save as much money as they can.
How economic can regenerate after Coronavirus
The largest areas of the economy are under lockdowns due to coronavirus. This year GDP growth in Norway’s mainland economics could settle anyplace between -3% and -10%. Due to the heavy dependency of the Norwegian economy on its oil industry, it always becomes a problem for the NOK when oil prices go down. Almost all of the country is tired of this dependency and is looking for ways out of it, but currently, the best tool for this is the fishing industry. That is not nearly enough diversification as a very fragile sector is supported by another fragile sector. Economists across the world have commented on the diversification issues and called the Norwegian government to action, which seems to be taking shape now.
According to business analysts from Nyecasino.ninja, the Norwegian government is re-evaluating its monopolistic system with the gambling industry and is thinking of privatizing it in the future.
This would most definitely bring in much-needed support for the country’s economy as a very large part of the population does indeed carry the demand for such services. But this one industry won’t be enough as well. If Norway wants to be independent of oil, it needs to wet its feet in more than a dozen new sectors. The authorities are also saying that Norway is having the most far-reaching restrictions since World War II. The country is experiencing an emergency state because the economy is at a complete standstill. Several central banks are giving the rescue packages to help the businesses that got hit the hardest while the pandemic but it is still not helping fully. At the same time, they are kind of encouraging negative second-round impacts on the economy. Predicting what the future holds for Norway is almost impossible. The pandemic is still ongoing. Developments will depend on the times when the countries will get back to the normal way of living.
Common assumptions
Based on the situation in the country during the lockdown, it’s not hard to imagine more dramatic scenarios. The fact that the situation in the country is very hard is the liability of the government. The country’s economy should not be that dependent on the oil. After decades of oil profits, Norway doesn’t know how to face economic problems in the country. Surely, oil and gas production has made Norway one of the world’s wealthiest nations, but in dark times like coronavirus, it is time to think about the rooms for other industries to grow. The oil-dependent economy is uncertain, the country can not be sure that they can take every pressure from everything bad that is happening in the world. The most important question is – Will oil and gas demand be the same after the pandemic? Or in the future without pandemic and with renewable energies? In a few years, the production starts to decline and the country needs to be ready for that. There are already dozens of investors and banks who are paying more attention to this risk. While all this crisis in the country, financial savings funds are also facing the dangers.
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