Young less optimists – highly educated increase the head start

Wednesday 23 May 2018

The future trend falls among young people under the age of 30, while those with the highest education look increasingly luminous on their own economic prospects.

Even the Norwegian people have a positive view of their own and the country’s economic future, but for the first time in a long time there are signs of spreading in the field, according to the forecast barometer, which the financial industry’s main organization, Finans Norge, is behind.

The survey presented Wednesday shows that young people’s optimism is declining – while increasing for other groups. And most of them grow the economic future of those with more than four years of higher education.
Living the Dream

Managing Director Idar Kreutzer in Finance Norway points out that many young people are struggling to enter the housing market, while a possible interest rate hike goes further.

The challenge is the mortgage regulation, which requires banks to claim 15 percent equity for the vast majority of loan customers.

– Many under 30 years of permanent employment and an income that initially indicates that they can manage a loan, struggles to provide sufficient equity. When they neither have parents who can put up, the road into the housing market becomes long and heavy, adds information director Tom Staavi in ​​Finance Norway.
Fear of regulation

The call from the financial industry’s main organization is therefore clear:

– This shows how important the work of the mortgage regulation is. Banks must have the opportunity to run good banking, so that young people with jobs and income – but without equity that satisfy the 15 per cent requirement – nevertheless enter the housing market, “Kreutzer says.

– It will be an accident for this group if the Ministry of Finance listens to the Danish Financial Supervisory Authority’s proposal to tighten further on the mortgage regulation. Our proposal is to expand the limits for how much banks can deviate from the 15 percent equity requirement, which will give banks more room for exercising good banking, says Staavi to NTB.
Safer jobs?

The economic future trend has spread to all education groups in the last year. But now the highest educators move heavily from the rest of the hopes.
Kreutzer believes that the introspection of robotization and artificial intelligence in working life becomes applicable.

“The figures may indicate that those with the highest education experience less fear, probably because they perceive that their jobs are harder to replace with robots,” he told NTB.
New oil revival

Although optimism over the last year has been above the average since the forecast barometer measurements began in 1991, the future confidence is still good during the years between the financial crisis and the oil depletion.

“It may indicate that it is slowly beginning to realize that oil revenues mean a lot to us and that in the future we must create very many jobs in other sectors if we are to manage to maintain welfare levels. We are feeling stronger today, than when the oil price was over $ 100 a barrel, and the money was ranting while we had a great salary settlement, low interest rates and low inflation, “Staavi said.

The expectation barometer is a quarterly survey conducted in collaboration between Finans Norge and Kantar TNS. A representative sample of around 1,000 people is interviewed on the phone with questions about expectations for own and the country’s economy.

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