On behalf of the employer association Spekter, Oslo Economics has assessed the risk of inflation in the economy of increased investment in infrastructure.
We analysed risk of inflation by increased investment in modern road and rail networks in the economy in general, and for the construction industry in particular .
Construction of a modern road and rail network will provide moderate price pressure in the economy. Model calculations from Statistics Norway (SSB) show moderate price pressure, even for modeling scenarios with highly accelerated investments. A capital-intensive construction industry explains why the risk of inflation is moderate.
Most of the employment growth will occur within the construction industry. Good access to foreign labour through the Norwegian and the foreign contractors are required to avoid bottlenecks in the construction market and enable increased investment in infrastructure.
Contact: Erik Magnus Sæther/Håkon Hagtvet
