Norges Bank

Economic Commentaries

Lower potential growth in the euro area after the crisis

Author:
Eilert Husabø
Series:
Economic Commentaries
Number:
7/2013

The global financial crisis in 2008 and subsequent euro area sovereign debt crisis have had a substantial adverse impact on economic growth. In Norway their direct effect took the form of reduced demand for Norwegian exports. We use a growth accounting framework to determine the factors that drove growth ahead of and during the crisis and ascertain the growth potential in the coming years. We find that for the period 2013–2020, potential growth is approximately half of what it was before the crisis.

 

This series consists of short, signed articles on current economic issues and are only published on Norges Bank’s website.

Published 30 December 2013 10:10
Published 30 December 2013 10:10