“The decline in the oil price, while having a negative impact on the domestic economy, was not as large as many feared,” Watson told Bloomberg. “Furthermore, the weakness in the currency has lessened any required rate adjustment by year-end.”

Consequently, Watson believes that there is room for the Norwegian krone to appreciate as the domestic economy strengthens.

An appreciating krone currency would also add to returns in Norway ETFs as the funds do not hedge currency risks.

Global X Norway 30 ETF

For more information on Norway, visit our Norway category.

Max Chen contributed to this article.