Economic Report on the Shopfitting Industry in Norway

ISO Congress, 28th April 2007

 

In general, immediate past president of ISO, Morten Gron-Hansen expressed his pleasure, that indeed this Congress was the first time ever, in Morten’s many years in our industry, that everybody were satisfied!

So also in Norway:

 

 

General economic development

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Key figures (2007 estimates):

-         Private consumption 4,1%

-         Gross National Product 3,2%

-         Core inflation 2,0%

-         Unemployment 2,7%

-         Interest rates expected to increase from 4,0% today to 5,25% at the end of the year.  

 

The low unemployment and high economic growth make it difficult to fulfil vacant positions in most areas. This drives up inflation and wage increases. However, the increase in productivity has been surprisingly high and will continue to sustain growth.

There is a risk of increasing inflation in future.

 

Development in shopfitting

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The industry is going well with high activity among the members of the Norwegian Shopfitting Association (NBF).

 

The successful companies offer service to their clients.

Lack of project managers and workers  however forces the industry to “cool down”.

 

The outlook for 2007-2008 is promising.

 

Business in Poland, Hungary, Czechia

As Morten Gron-Hansen’s group of companies New Store Europe has also been doing business in Poland for about 10 years now, Morten added, that there is a huge growth on these new European markets.

 

It must not be overlooked, that the infrastructure still has to cope with a certain amount of “black money”, why the official unemployment rate of 16-18% is not considered trustworthy.

 

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